Auction Wrap Up – 24th October 2015

October 26, 2015/ Pricefinder / Auction Results

“Lower clearance rates the norm new but auction numbers remain high”

The year’s fifth and October’s second ‘Super Saturday’ saw 2,841 properties listed for auction around the nation. Victoria and NSW represented 85 per cent of listings, with Queensland, South Australia and Canberra accounting for most of the remaining 412 listings. The preliminary clearance rate closed at 68.1 per cent on Saturday but is expected to settle in the mid 60s upon revision. The national clearance rates remained below 70 per cent since mid-September and are expected to linger at this level in the short term; a recovery is unlikely before the end of February and will ultimately depend on buyer’s confidence and mortgage affordability.

Melbourne

Melbourne recorded its busiest Saturday of the year and the second busiest on record. The city’s 1,479 weekend listings represented a 25 per cent increase from last week’s figure and a 70 per cent rise on the month’s average. The record activity led to a small decline in clearance rate which nudged closer to 70 per cent (a preliminary rate of 70.4 per cent). This rate, however, is likely to close below 70 per cent upon revision, bringing to an end the city’s nine-month run above 70 per cent. The clearance rate is likely to remain in the sub 70 per cent level at least until February 2016.

Sydney

Sydney’s listing numbers were more subdued, with only 796 scheduled auctions on Saturday. The number declined from the previous two weeks but is expected to rise above 1,000 listings in the coming Saturday. The clearance rate was similar to last week’s, signalling a softer market. The preliminary figure suggests that the city cleared 64.4 per cent of stock, although this rate that is likely to equate 60 per cent upon revision. This level of clearance was last seen at the end of 2012, before the strong rally of the past three years, when the city’s median house price was $663,236 (compared to $1,032,433 in September 2015).

Odi Reuveni / Research Manager / PriceFinder