Auction Wrap Up – 27 February 2016

February 29, 2016/ Pricefinder / Auction Results

“Saturday recorded peak auction activity for February and year-to-date”

National

Saturday recorded peak auction activity for February and year-to-date, with 2,126 listings across the nation’s capital cities. Melbourne accounted for 57 per cent of listings while Sydney represented 30 per cent of the national figure.

The national clearance rate continued to rise, closing at a preliminary figure of 74.3 per cent.

Melbourne

Melbourne cleared 75.3 per cent of stock. However, this preliminary figure is likely to be revised to the lower 70s by the time all results are collected.

The Melbourne market continued to show resilience, with 1,212 listings on Saturday. Despite falling short of the corresponding weekend last year, Saturday’s activity increased from the previous weekend and was higher than the level recorded on the final February Saturday in 2014 and 2013.

Sydney

Sydney’s auction clearance rate remained steady, with a preliminary rate of 76.9 per cent, against last week’s (preliminary) 76.8 per cent. On a positive note, the Harbour City recorded a higher clearance rate than its Victorian counterpart for the first time since August 2015, despite a continued rise in listings. The city’s listing numbers climbed again this week, with 648 properties listed for sale.

Other indicators – Stock on market

The Stock on Market indicator counts the monthly number of existing properties advertised for sale and is used to measure the level of supply. When stock is low, it means that the market is tight and there is strong demand for properties. However, it may also occur at specific times of the year when demand is expected to be low. When the number is high, there are more properties available for sale, giving grater selection to buyers, which often leads to longer sale periods.

When we observe the yearly cycle since 2013, stock tended to be at its lowest in January, August and June, and at its highest in October and November.

Melbourne

Melbourne had a higher number of house and unit listings over the past three years, compared to its NSW counterpart. In that period, the highest number of listings was in May 2014, when 47,613 properties were listed for sale, while the lowest figure was recorded in January 2016.

Stock levels can change sharply. In November 2015, there were 39,767 available listings but the number fell to 30,707 in January 2016, a 24 per cent drop in two months.

Sydney

In 2015, Sydney exhibited the highest peak and lowest trough in the past three years. It also had the highest build-up of stock from a January low of 17,292 listings to a November high of 27,184 listings, equating to an 11-month increase of 36 per cent. In November, auction listings accounted for 17 per cent of the total stock, compared to less than one per cent of stock in January.

Odi Reuveni / Research Manager / PriceFinder