Regional housing markets decline three months to October while combined capitals host the busiest auction week since late June.
Auction activities bounce back for the second week as combined capitals record 2,266 auctions. Find out which cities continue the upward trend.
Australia’s regional housing market declines
Australia’s regional housing markets have recorded fast declines after their strong growth during COVID-19, CoreLogic’s latest Regional Market Update revealed.
Data showed that house values in 22 of the 25 largest non-capital city regions plunged three months to October 2022. Richmond-Tweed recorded the biggest fall this quarter with -11.7%. Coming in second place were the Southern Highlands and Shoalhaven and Sunshine Coast where house values were both down by -7.1%.
Meanwhile, only Central Queensland (0.1%), SA’s South East (0%) and WA’s Bunbury (0%) defied the downfall.
“Consecutive interest rate rises, persistently high inflation, and waning consumer sentiment saw the pace of value declines accelerate across regional Australian property markets,” Kaytlin Ezzy, CoreLogic’s economist, said.
“It is unsurprising the Richmond-Tweed region recorded the strongest decline in house values. Throughout the COVID period, values skyrocketed, rising more than 50% and taking the median house value to more than $1.1 million,”
“However the impact of this year’s floods, coupled with seven consecutive rate rises, has seen house values fall in the region by nearly -16% since April,” she added.
Preliminary total auction rate
CoreLogic showed that homes taken to auction this week rose by 4.4% from the previous week as 2,266 went under the hammer. While the uptrend continued for the second week, this was –39.1% lower than this time last year when 3,720 homes were recorded.
A little shy of last week’s record of 775, Sydney accomplished 766 auctions this week. This was -1.2% lower than last week and way far compared to last year’s record when 1,352 homes were taken to auction.
Melbourne’s auction activity remained on the uptrend and held the busiest auction market with 981 homes, up from 938 in the previous week. However, this was a significant decline from last year when 1,657 auctions were recorded.
Of the smaller capitals, Brisbane still had the busiest auction market with 198 homes under the hammer – up by 13.1% from last week. Adelaide still came in second with 157, a 2.6% increase from last week. Then, Canberra’s record increased by 20.2% with 131 homes for auctions.
Preliminary total clearance rate
After shutting a bit down last week, the preliminary clearance rate across the combined capital cities increased by 3% this week. Of the 1,790 results collected so far, 63.1% of auctions were successful while this time last year, 70.3% of auctions returned successfully.
After falling last week, Sydney’s preliminary clearance rate shot up by 6.3% as 67.5% of the results collected so far turned out successful. However, the city recorded its highest withdrawal rate since mid-September with 20.8%.
In Melbourne, the preliminary clearance rate stood above the 60% mark for the 17th consecutive week with a success rate of 65.5% of the 817 results collected so far. This was 3.2% higher compared to last week’s early rate of 62.3% but -3.1% lower than last year when 68.6% of auctions were successful.
Adelaide still held the most successful preliminary clearance rate of the smaller capitals this week with 61.2%. Coming in second was Canberra with 50.6% and Brisbane with 49.6%. Meanwhile, Perth had five successful auctions of the 22 results collected so far while Tasmania’s two auctions were successful.
With house values still down from the COVID boom and choices up in the market, this is a great time to purchase a property at a lower price point. Here’s what It’s Simple’s managing director, Joseph Daoud, shares about why 2022 is the year to buy a property in Australia:
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