This article is from the Australian Property Journal archive
SYDNEY’S residential property auction market has wrapped up the year with listings dropping significantly last weekend whilst Melbourne has ended on a strong note.
According to preliminary data from Domain, 320 properties were listed and so far 224 results were reported, of which 224 homes sold resulting in a clearance rate of 61.4%. The total value of sales was $138.2 million.
Compared to the previous weekend there were 734 listings, 586 auctions and 362 homes sold, reflecting a clearance rate of 53.6% and total sales of $325.4 million.
Whilst in the same weekend last year, there were 406 listings, 353 auctions and 284 sales totalling $255.3 million and reflecting a clearance rate of 74%.
Domain senior economist Andrew Wilson said Sydney’s home auction market has closed down for the year with predictably modest numbers of properties going under the hammer.
“Auction numbers have been well down over December compared with last year as seller confidence has declined with sharply falling clearance rates over spring.
“December auction activity will be well below last year’s record levels with 500 fewer homes set to go under the hammer over the month,” he said.
“Although clearance rates have fallen sharply over spring, consistent results over the past month with rates averaging 57.9% indicate a consolidation of market activity. This will provide some relief for sellers and a platform for a rebound in confidence next year,” Wilson said. “The Sydney home auction is now showing signs of stabilising following a rollercoaster ride of activity this year. The market has fluctuated wildly from record highs over autumn to the lowest clearance rates for over three years to end the year.”
Melbourne ended the year with 900 listings last weekend, according to the REIV. So far, 642 auction results were reported with 451 properties selling and 191 being passed in, 68 of those on a vendor bid.
A clearance rate of 70% was recorded compared to 67% in the previous weekend from 1,539 auctions and 64% in the same week last year from 555 auctions.
The total value of auction sales on the weekend was $322.31 million.
REIV CEO Enzo Raimondo said there are about 3,900 auctions in the month of December, up more than 10% from last year – the highest on record for the month.
He added that this year has seen the strongest auction market ever, with a record 44,000 auctions held.
Meanwhile there were 338 private sales totalling $208.75 million.
Wilson said the number of homes going under the hammer last weekend was a record pre-Christmas offering and clearly reflects robust seller confidence in the market.
“The Melbourne home auction market is set to end the year on a high, despite confronting a record pre-Christmas Saturday of auctions next weekend. Clearance rates have held up encouragingly over the past month, despite the usual late-spring, early-summer seasonal impact of higher listing numbers.
“The strengthening of the local economy this year has been a key driver of the resilience of the Melbourne housing market,” he said.
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Australian Property Journal
