This week beats last week as the combined capital cities hold the busiest auction week since mid-June with 2,506 homes while national home values decline by -1.0% in November.
Find out which cities top the auction week and which cities continue to have falling dwelling prices.
Preliminary total auction rate
Up by 3.8% from the previous week’s record of 2,414, capital cities held the busiest auction week since mid-June with 2,506 homes under the hammer. While auction activities heat up, this was -39.7% lower than this time last year when 4, 153 homes were taken to auction.
Melbourne’s record remained strong with 1,118 homes. This was a 10.6% increase from last week’s record of 1,011 but -41.5% lower than last year when 1,912 homes were taken to auction.
Meanwhile, in Sydney, 895 homes went under the hammer – a -3.7% fall from the previous week when the city recorded 929 auctions. In the same week last year, 1,466 homes were taken to auction.
Of the smaller capitals, Adelaide was the busiest market with 178 homes, followed by Brisbane with 171 and Canberra with 126. In Perth, 15 homes were taken to auction while Tasmania recorded three.
Preliminary total clearance rate
As auction activities ramped up, the preliminary clearance rate across the combined capital cities also rose by 0.40% this week. Of the 1,921 results collected so far, 61.9% of auctions were successful, but this time last year, 66.3% of auctions returned successfully.
In Melbourne, the preliminary clearance rate increased by 1.4%. Of the 894 results collected, 62.4% were successful. However, this was down compared to this time last year when 65.3% of the auctions were successful.
Of the 701 results collected so far, Sydney had a success rate of 64.8%, which was up by 0.60% from the previous week’s preliminary clearance rate of 64.2%. This time last year, the city reported a 63.8% clearance rate.
Meanwhile, Canberra recorded the most successful preliminary clearance rate of the smaller capital cities this week with 67%, followed by Adelaide with 62.1% and Brisbane with 42.3%. Then, Perth had three successful auctions of the eight results collected so far, and Tasmania had one successful auction of the three recorded so far.
Australia’s national home values declined by -1.0%
Based on CoreLogic’s latest Home Value Index, national dwelling values fell by -1% in November, which was approximately -$53,400 with Sydney and Melbourne leading the downturn.
As stated by Tim Lawless, CoreLogic’s research director, “Three months ago, Sydney housing values were falling at the monthly rate of -2.3%. That has now reduced by a full percentage point to a decline of -1.3% in November,”
“In July, Melbourne home values were down -1.5% over the month, with the monthly decline almost halving last month to -0.8%.”
While home values continue to go down, the pace slightly eased compared to August when national home values slumped by -1.6%.
“Potentially we are seeing the initial uncertainty around buying in a higher interest rate environment wearing off, while persistently low advertised stock levels have likely contributed to this trend towards smaller value falls,”
“However, it’s fair to say housing risk remains skewed to the downside while interest rates are still rising and household balance sheets become more thinly stretched.”
Lawless suggested that the pace could still pick up depending on how long the RBA hikes the cash rates: “Next year will be a particular test of serviceability and housing market stability, as the record-low fixed rate terms secured in 2021 start to expire.”
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