Strong auction clearances hose down cooling theory

Strong auction results on the weekend adds “complexity” to the theory the property market is topping out.

The preliminary auction clearance rate for Australia’s capital cities was 76.2 per cent last week, a strong result that adds “complexity” to the theory the property market is moving through its peak growth rate, says Cameron Kusher, head of research at CoreLogic.

Volumes were also strong with 2,376 auctions held in the nation’s capital cities.

High clearance rates and volumes in Sydney and Melbourne suggest selling conditions are particularly strong in those markets.

Sydney recorded a clearance rate of 79.4 per cent, while Melbourne’s clearance rate was 76.6 per cent.

REINSW deputy president Leanne Pilkington told SCHWARTZWILLIAMS that agents have been reporting to her lower numbers at open house inspections. But the decline in numbers doesn’t appear to be affecting clearance rates, she said.

“With Auction numbers up by 63 per cent over the previous week, and clearance rates a really strong 79.4 per cent, the reports of lower levels of attendees at open homes being reported in some areas of Sydney are yet to have an impact on results,” she said.

Vendors could be adjusting their reserve prices to clear properties, speculated Kusher.

Source: CoreLogic.

REIV President Joseph Walton told SCHWARTZWILLIAMS, “Auction activity remains strong across [Melbourne], with more than 2,000 homes set to go under the hammer before the end of the month.”

“Melbourne’s inner suburbs recorded some of the strongest auction results this weekend, with the City of Boroondara topping the list for both volumes and sales.”

In the City of Boroondara, 68 auctions properties went to auction, and 51 sales were recorded.

“The premium end of the market performed strongly this weekend with high auction sales in Kew, Glen Iris and Camberwell,” said Walton.

Ten homes were sold under the hammer in Kew, Preston and Glen Iris, followed by Camberwell with nine sales, said Walton.

The City of Hume (30 properties), Hobsons Bay (24), Craigieburn (8) and Williamstown (7) all recorded 100 per cent clearance rates.

View on Luxury List one of Queensland’s top listings this week. The five-bedroom house at 23 Drysdale Street, Mount Ommaney, achieved a record price at auction last week through agents LJ Hooker Paddington.

Source: The Real Estate Conversation


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