Auction Wrap Up – 19 March 2016

March 19, 2016/ Pricefinder / Auction Results

National

The year’s first Super Saturday recorded strong capital city results amid the highest number of listings since November 2015. Almost three quarters (73.6 per cent) of the 2,887 listings were sold before the auction or under the hammer. The figures proved the market’s ability to absorb a high level of stock, ending the autumn selling period on a high. We expect a low number of listings for the coming Saturday as the market winds down over Easter.

Melbourne

The Auction Capital recorded one of its busiest Saturdays on record, with 1,598 listings across the metropolitan region.  Buyers and sellers’ attempt to clear stock on the weekend resulted in a 74.1 per cent clearance rate. However, a higher number of listings this year and a slightly slower market failed to meet last year’s 76.3 per cent clearance.

Sydney

Sydney’s auction listings fell from last year, confirming a market slowdown despite a stable clearance rate. The Harbour City had 911 listings on Saturday, representing a 15 per cent decline from the Pre-Easter Saturday in 2015. The city recorded a lower clearance rate of 75.8 per cent compared to 76.3 per cent for the previous Saturday.  Upon revision, March’s weekend results have failed to break the 70 per cent mark in the first two Saturdays. This week’s revised figure may be higher than previous two weeks but remains well below the 84.2 per cent clearance recorded for the corresponding weekend in 2015.

* Saturday’s auction clearance rates are preliminary.

Other indicators – Vendor Discounting

The vendor discounting indicator represents the change in dollar value between the initial listing price and the sale price for private treaty transactions. This indicator is used to assess the balance between supply and demand and the relative strength of buyers versus sellers. When there is little discounting the market is tight, sellers have the upper hand as there is strong demand for properties. A higher level of discounting means that more stock on the market and buyers are in control.

We base our discounting figure on houses and units combined.

Across the nation, Sydney reported the lowest discounting in February 2016, with an average rate of 5.3 per cent, while Perth experienced the highest discounting at 7.7 per cent. Sydney’s discounting increased by one percentage point since August 2015, when the average discounting was only 4.3 per cent, representing approximately $46,000 of the median house price value.

Over the past three years, Canberra recorded the lowest discounting, with a record-low of four per cent recorded in February 2014. The gold coast was the most improved market, declining from an average discounting of almost 10 per cent in February 2013 to 5.6 per cent in February 2016. The Perth market moved in the opposite direction, from an average discounting of 5.3 per cent in early 2013 to 7.7 per cent at the start of 2016.

Odi Reuveni / Research Manager / PriceFinder