This article is from the Australian Property Journal archive
THE first interest rate rise in 11.5 years has spooked home sellers and buyers with auction sales tumbling by $2 billion.
Last weekend’s auction market followed the Reserve Bank of Australia’s decision to raise the official cash rate by 0.25% to 0.35%.
This is the first one of many increases expected as the RBA will pull the monetary policy levers to bring inflation towards its target range of 2 to 3%, which governor Philip Lowe predicts will happen by mid-2024.
As a result, economists predicting rates will increase each month this year and reach 2% by year-end and 2.5% by mid-2023.
The specter of further increases had an immediate impact on the auction market on the weekend. According to Domain, across Australia listings dived to 1,677 properties on Saturday, whilst 1,062 auctions and 653 homes sold, resulting in a clearance rate of 61.5%. Volumes also fell substantially to $567.8 million, the median house and unit sale prices were $1,165,500 and $700,000.
In contrast the previous weekend had 2,227 listings, 1,879 auctions and 1,190 sales totalling $1.05 billion and a 63.3% clearance rate.
Sale volumes are down by over $2 billion compared to the hot market a year ago, where there were 2,515 listings, 2,455 auctions and 1,849 sales reported resulting in a 75.3% clearance rate. Sales totalled $2.577 billion.
Sydney sales fell to just $207.2 million, with 577 homes listed of which 344 went under the hammer and 199 sold resulting in a 58.5% clearance rate. The median house and unit sale prices were $1,601,750 and $944,000.
Sales have halved from the previous weekend’s $419.9 million where there were 818 listings, 707 auctions and 399 sales, representing a 56.4% clearance rate.
Last year the market was roaring with clearances of 79% and sales of $1.348 billion. There were 988 listings, 963 auctions and 761 sales.
Melbourne also felt the immediate effects with sales tumbling to $256.1 million. Of the 767 homes listed, 539 auctions and 324 sales were recorded. The clearance rate was 60.1% whilst the median house and unit sale prices were $1,085,000 and $612,500.
It is down from the previous weekend’s 1,116 listings, 944 auctions and 623 sales totalling $509 million and a 66% rate. This time last year the rate was 72.4% from 1,229 listings, 1,208 auctions and 875 sales totalling $1.04 billion.
Canberra reported 65 listings, 51 auctions and 38 sales, representing a 75% clearance rate. Volumes totalled $33.277 million and the median sale price was $924,000.
Adelaide recorded a 78% rate from 151 listings, 68 auctions and 53 sales totalling $33.602 million, the median sale price was $831,500.
Brisbane had 117 homes listed and 64 went under the hammer with 39 selling, representing a 61% rate and sales of $34.507 million. The median sale price was $1,217,500.
| Auction highlights this week Saturday, 7 May 2022 (Source: Domain) | ||
| City | Location | Value Sold |
| Most expensive | ||
| Sydney | 26 Woodlands Rd, Taren Point NSW 2229, 5 br House, McGrath Brighton-Le-Sands | $6,000,000 |
| Melbourne | 20 Lisbon St, Glen Waverley VIC 3150, 3 br House, Barry Plant Monash | $2,980,000 |
| Adelaide | 72 Kenilworth Rd, Parkside SA 5063, 4 br House, Harris Real Estate – Copper Coast R | $2,275,000 |
| Brisbane | 191 Arthur St, Fortitude Valley QLD 4006, 3 br House, Place Estate Agents – New Farm | $3,705,000 |
| Canberra | 14 Bragg St, Hackett ACT 2602, 4 br House, home.byholly | $1,920,000 |
| Most affordable | ||
| Sydney | 2/59 Brancourt Av, Yagoona NSW 2199, 2 br Unit, R&W Strathfield | $440,000 |
| Melbourne | 7/765 Punt Rd, South Yarra VIC 3141, 1 br Unit, Belle Property St Kilda | $300,000 |
| Adelaide | 12 Kent St, Queenstown SA 5014, 4 br House, RW Unley | $345,000 |
| Brisbane | 20 Allbutt St, Kuraby QLD 4112, 4 br House, LJH Sunnybank Hills | $456,000 |
| Canberra | 43/16 David Miller Cr, Casey ACT 2913, 2 br Unit, LJH Belconnen | $460,000 |
