Auction rates are slowly starting to rise when compared to last week with the exception of Sydney. What’s the reason for this? The Spring seasonal selling period has started, while low auction volumes and more realistic vendor pricing are helping results hold up.
Across the combined capital cities, the clearance rate averages at 51.9%, higher than the 46.1% reported the previous week. That sounds great, but before getting too excited it’s important to know that the same time last year reported a 71.1% clearance rate (Figures: My Housing Market).
This is encouraging news, but we’re far from a full market recovery.
What’s Going on in Sydney?
Last week, Sydney reported a 62.6% clearance rate which has dropped to 57.8% this week. Housing volume was also slightly lower than the previous week with 706 homes vs 709. However, this is much lower than the 989 homes and 77.1% clearance rate reported this time last year.
Canterbury-Bankstown took home the highest clearance rate in the city at 73.7%, followed by the Northern Beaches at 72.7%. Shockingly (at least for me personally), Sydney’s west reported the weakest clearance rate at just 33.3%.
How About Melbourne?
Melbourne is continuing its upward trajectory with a weekly clearance rate of 64.2%, higher than the 63.4% the previous week. Again, it’s lower than the 73.4% reported this same time last year but it is closer to last year’s figures (at least in comparison to Sydney).
Top spots were Melbourne’s North East with a reported clearance rate of 70.0% followed by the Outer East 66.0%. The lowest regional rate was the Inner East at 56.8%.
Brisbane is Struggling
Clearance rates have floundered at 33.3% but that is up from an abysmal 19.4%. However, once again, rates are much lower than they were at this time last year at 55.8%.
Spring Has Sprung
Given the general attitude of buyers and sellers since the property tax reforms, it was expected that the spring selling season would be underwhelming. However, this data is suggesting that the season might be better than expected.
This is two weeks of improvement but it’s important not to get carried away. Two weeks aren’t a broader trend, but they are the beginning of one.
But! And this is a big but. This progress could be completely wiped out if there are further interest rate hikes. Unfortunately, that is a real possibility.
If you’re looking to make a move this spring, don’t hesitate to reach out to our team of experts at It’s Simple for a no-obligation, jargon-free conversation about your options.