Homebuyers’ choices are through the roof as last week’s data from CoreLogic shows that 2,190 homes were put up for auction ending 18 September 2022.
Last week, 2,190 auctions were held across capital cities making it the most packed auction week since late June. This was up from the previous week’s record of 1,918 auctions.
Preliminary total auctions in capital cities
As seen on the graph, Melbourne led last week’s auctions with 996 homes, up from 847 from the previous week and 431 from last year. Following Melbourne was Sydney with 771 auctions, up from 698 from the previous week but down from 786 last year.
Of the smaller capital cities, Brisbane recorded 168 homes for auction, down from 183 last year, followed by Adelaide with 132 and Canberra with 102. On the other hand, Perth held 20 auctions while Tasmania only had one.
If you’re house hunting, you may want to check out these areas because you have more options on the table as homes for sale continue to flock to the market.
Preliminary total clearance rate
So far, 62.5% of the auctions were successful last week. This was an increase from the previous week’s clearance rate of 59.7%. Around this time last 2021, 75.1% of the auctions were successful. CoreLogic suggests that fewer activities in the following week and the downturn in volumes can be credited to long weekends and the AFL Grand Final.
In Melbourne, 64.4% were successful, which was 1.2% higher compared to the previous week (63.2%), which was revised to 61.9% in the final figures. Meanwhile, Sydney recorded 60.2% successful auctions. This preliminary clearance rate is a bit lower than the previous week’s preliminary record of 60.6%, which was later revised to 60% in the final figures.
Among the smaller capital cities, Adelaide led the preliminary clearance rate with a strong record of 75.6%, followed by Canberra with 65.8% and Brisbane with 52.8%. On the other hand, only 3 out of the 10 results collected so far in Perth turned successful. Tasmania’s sole auction was also successful.
Home value changes
Aside from the boom in auction rates, there is also a downturn in housing values, which suggests that Australia is moving from the seller’s market to the buyer’s market.
This is great news for homebuyers, especially if you’re a first-home buyer, as property prices are plunging, you may have better borrowing power for your home loan and there are government schemes that can help you enter the property market faster.
Based on CoreLogic’s Home Value Index, national home values were down –1.6% over August 2022 with Sydney leading the downturn with -2.3%. Ending 18 September 2022, Sydney still led the downturn trend in home values with -1.9%, followed by Brisbane with -1.8%, Melbourne with -1% and Adelaide and Perth both with –0.2%.
Mortgage market activity
With the auction volumes rising and property prices falling across Australia, now may be a good time to buy a property. To save yourself from all the hassle, let It’s Simple’s team of brokers handle your home loan from application to settlement.
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