Australia’s national home values fell by -4.1% three months to October while preliminary auction activity increased by almost 13% across the combined capital cities this week.
With the interest rate hikes biting the market, find out which cities led the downturn.
Australia’s property market declines
While the monthly pace of decline in national home values slowed at -1.2% through October, it fell by -4.1% in the three months to October 2022, based on CoreLogic’s November monthly housing chart pack.
Furthermore, Australia’s dwelling values slid down by -0.9% over the past 12 months – making it the first annual decline since October 2019.
Partly attributed to the RBA’s seven consecutive cash rate hikes, sales volumes have decreased while properties are taking longer to sell as buyer demand has declined.
Preliminary total auction rate
CoreLogic’s recent data shows that auction activities rose by almost 13% from last week’s record of 1,917 as 2,159 homes were auctioned across the combined capital cities this week.
After dropping by -6.7% last week, Sydney bounced back and recorded its busiest auction week since late September. The city held 786 preliminary auctions, which is an 11.6% increase but a 37.6% downgrade from the auctions held this time last year.
In Melbourne, auction activity remained on the uptrend as 920 homes went under the hammer. However, this was a significant decline from this time last year when 1,564 auctions were recorded.
Across the smaller capitals, Brisbane had the busiest auction market as it recorded 171 auctions – up by 31.5% from last week. Adelaide came in second with 149, which saw a -5.1% decrease from last week.
Canberra held its ground with 112 homes for auctions. Meanwhile, Perth’s record went slightly down with 16 auctions this week while Tasmania had five.
Preliminary total clearance rate
While auction activities shot up, the preliminary clearance rate went down. After recording 63.7% (revised to 59.0% in the final figures), the highest record since late May, the early rate across the combined capital cities declined.
Of the 1,709 results collected so far, 60.1% turned out successful, marking a -3.6% drop from last week’s preliminary rate.
Melbourne’s early clearance rate stood above the 60% mark for the 16th consecutive week with 60.1%. This was -0.9% lower compared to last week’s early rate of 61.9% and way down from this time last year when 71.8% of auctions were successful.
After the city’s success in the previous week (69.7%), Sydney’s preliminary clearance rate fell to 60.9%. This marked a -8.8% decline from the city’s strongest early clearance rate since mid-April.
Coupled with the decline, Sydney’s withdrawal rate rose above 20% to 24.4% – the first time since late September (20.9%).
After Adelaide’s lowest preliminary clearance rate since early August last week, the city held the most successful week of the smaller capitals. Up by 2.3% from last week, the city recorded a preliminary clearance rate of 68.6%.
Coming in second was Canberra with 59.7% and Brisbane with 41.8%, with both cities having a -1.2% decline from last week. Meanwhile, Perth had three successful auctions of the 12 collected so far. In Tasmania, only one of the three results collected so far turned successful.
With the home values down and choices still up in the market, you may want to take advantage of the situation to purchase a property at a lower price point. To help you save more for your deposit, here are 4 strategies from It’s Simple’s managing director, Joseph Daoud, to help you step up your savings:
If you want to know your options and unlock the price ranges in your area, you can get your FREE property report today from Australia’s leading market information and analysis.
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Source: CoreLogic
