Melbourne sees sharp rise in auctions, but Sydney numbers down

Melbourne sees sharp rise in auctions, but Sydney numbers down
Melbourne sees sharp rise in auctions, but Sydney numbers down

The home auction market is picking up after the slight pause for Easter holidays, with 1,677 capital city homes scheduled to go under the hammer this week, according to CoreLogic RP Data.

While Sydney had more auctions than Melbourne over the past two weeks, this week, Melbourne’s auction activity is set to rise, bringing the total number of residential auctions to 730, as opposed to the 624 scheduled for Sydney.

Auction volumes remain relatively steady across the remaining capital cities.

Melbourne sees sharp rise in auctions, but Sydney numbers down

Melbourne's 730 auction figure will be well ahead of last weekend’s 482 listings and higher than the 562 auctioned over the same weekend last year, wrote Domain Group’s chief economist Dr Andrew Wilson in his blog. 

Although auction activity is on the rise, overall autumn listings will likely remain below the levels recorded last year over the same period. Falling interest rates a year ago were a catalyst for a surge in housing market activity in Melbourne. 

The west will again clearly host the highest number of auctions this weekend with 126.  The north-east is next highest with 111 followed by the outer east (91), the inner south  (88), the inner city (82), the north (77), the inner east (54) and the south-east with 53 auctions.

Mount Waverley has the highest number of auctions listed this weekend, with 16, followed by Preston with 14, Reservoir and East Bentleigh, each with 13, Pascoe Vale with 10 and a number of suburbs with nine auctions scheduled including Glen Waverley, Essendon, Noble Park and Hawthorn.

The robust Melbourne home auction market resumed last weekend without missing a beat following the Easter holiday break.

Melbourne recorded a clearance rate of 73.8 per cent, which was just below the 74.1 per cent recorded on the pre-Easter weekend a fortnight ago and also below the boom-time 77.5 per cent recorded over the same post-Easter weekend last year.

Last Saturday’s result was just below the average weekend rate of 75.4 per cent recorded over the previous nine Saturdays, with a high of 79.2 per cent and a low of 73.4 per cent reported over that period.

Low interest rates continue to fuel buyer activity in both Melbourne and Sydney's housing markets, said Dr Wilson. This week the Reserve Bank predictably decided to leave official rates on hold over April at the record low two per cent for the 11th consecutive month. 

A near-term cut in rates, however, remains on the cards with continuing mixed reports on the health of the national economy. The latest Australian Bureau of Statistics data indicates that the recent home building boom has peaked, the trend for retail sales growth is declining, house prices are flat or falling, inflation remains low in an increasingly lifeless economy and the Australian dollar continues to track well above the preferred levels of policymakers.

Sydney auction numbers are down this weekend with the local market straining to regain momentum after the Easter holidays.

This Saturday, just 509 homes are scheduled to go under the hammer. This is below the 539 listed last weekend and also well below the 535 homes auctioned over the same weekend last year, he said.

Sydney auction levels this autumn remain far below those recorded over the same period last year. Falling interest rates a year ago were a catalyst for an unprecedented surge in housing market activity in Sydney, but so far in 2016 they have remained on hold. 

Sydney’s inner west has the highest number of auctions listed this weekend, with 82, followed by the upper north shore (78), the south (74), the city and east (58), the lower north (56), the south-west (34), the west (31), Canterbury Bankstown (28), the northern beaches (27), the north-west (19) and the central coast (17). The Blue Mountains have no auctions scheduled. 

Mosman, with nine auctions, will be the busiest this weekend followed by Ryde, Randwick, Carlingford, Killara and Marrickville, each with seven, and Blacktown with six. There are also several suburbs with five auctions scheduled on Saturday, including Epping, St Ives, Lane Cove North, Strathfield and Bexley.

The Sydney weekend home auction market returned from the Easter holidays in the same robust form it has consistently produced so far this year, notes Dr Wilson.

Sydney reported a clearance rate of 73.7 per cent last weekend, just below the 74.1 per cent recorded on the pre-Easter weekend the fortnight previous and also below the boom-time 86.8 per cent recorded over the same post-Easter weekend last year.

Last Saturday’s result was just below the average weekend rate of 74.5 per cent recorded over the previous nine Saturdays, with a high of 76.9 per cent and a low of 71 per cent reported over that period.

Over the week ending April 3 there were 1,582 capital city auctions with CoreLogic collecting results for 1,434 auctions, accounting for almost 91% of all auctions.

The final clearance rate was recorded at 66.6% which is down from the previous week and the lowest clearance rate in three weeks. The number of auctions increased from just 554 over the previous week. Excluding Sydney and Melbourne, clearance rates rose in Brisbane, Adelaide and Hobart but fell elsewhere. Auction volumes were also higher this week across all regions except Tasmania. 

 

 

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Auctions Melbourne Sydney

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