THE winter season has cooled the hot residential property auction market.
Despite fewer properties on offer the clearance rate weakened across the nation.
Melbourne set a new 11 month low clearance rate of 72% last weekend after only breaking that record a week earlier with 74% from 962 auctions.
According to the REIV, there were 801 auctions and 578 properties sold last weekend.
In the same weekend last year, the clearance rate was 69% from 894 auctions.
The total value of auction sales was $612.38 million and a median house, apartment and land sale price of $995,000, $815,000 and $705,000 was recorded respectively.
It was not just the auction market that has cooled, the private sales market was also muted last weekend with only 238 transactions totalling $162.07 million.
Domain’s chief economist Andrew Wilson said the clearance rate is the lowest recorded since July last year.
Despite the fall, Wilson said the market clearly remains in favour of sellers with the clear prospect of a winter resurgence.
“The market has generally eased over recent weekends with the onset of the typically quieter winter selling season.
“Although last Saturday’s result was the lowest recorded since July last year, the market clearly remains in favour of sellers with the clear prospect of winter resurgence driven by significant stamp duty reductions for first home buyers that come into effect on July 1,” Wilson said.
After four consecutive weekend declines, Sydney’s clearance rate picked up last weekend. The Sydney market has been under pressure from a flood of listings in recent weeks, however last weekend there was reprieve.
As a result, the clearance rate improved due to the fall in properties on offer, according to Domain’s Australian Property Monitors.
According to APM, there were 748 listings, 479 auctions and 382 sales resulting in clearance rate of 69.5%.
It is an improvement from the previous weekend’s 65.4% from 793 listings, 629 auctions and 464 sales and 67.7% from 636 listings, 535 auctions and 406 sales in the same weekend last year.
Last weekend saw $400.7 million worth of homes sold under the hammer compared to $491 million the previous weekend and $538 million last year.
A median house and unit price of $1,511,500 and $955,000 was recorded.
The previous weekend’s clearance rate of 67.7% was the lowest rate recorded since December 2015.
Wilson said prices growth in the Sydney market has also eased over recent months as the impact from last year’s cuts to interest rates fades.
“Median asking prices for Sydney private sale listings however increased solidly by 1.2% over the month of May to a new record high $799,000. Sydney monthly house prices have now risen by 3.4% over the past year.
“Asking prices for Sydney units also increased over May although not as strongly as houses – up by just 0.1 percent to a new record high $700,000. Sydney monthly unit prices have now risen by 6.1% over the past year,” he added.
Canberra’s market surged back last weekend and recorded a strong clearance rate of 70%.
There were 53 listings and 47 homes were auctioned and 33 sold for a total of $19.71 million.
The clearance rate is an improvement from the previous weekend’s 55.3%.
A median sale price of $631,000 was recorded.
Perth had 68 listings but only 32 properties were auctioned. A clearance rate of 25% was recorded with just eight properties selling under the hammer, whilst 20 homes were passed in.
Similarly, Brisbane’s market showed promising signs with 88 listings. However only 38 auctions were reported with 17 properties selling under the hammer, representing a clearance rate of 40%.
Brisbane achieved total auction sales of $15.50 million and a median sale price of $797,500.
Across Queensland, there were 309 listings and 249 results were reported with 79 properties selling at auction. Although 25 homes sold prior to auction and one sold after, whilst 130 properties were passed in.
Adelaide also reported higher listings with 72 properties on offer. Again, only 34 properties were auctioned and 25 sold, resulting in a high clearance rate of 74%.
The total value of auction sales was $10.67 million and a median sale price of $542,000 was recorded.
Across the state of South Australia, there were 108 listings, 100 auctions and 50 sales under the hammer.
It was another quiet weekend in the top end with only nine listings, of which eight auctions were reported resulting in one sale – a three bedroom house at 1099 Mcmillans Rd Knuckey Lagoon for $1,555,000.
Similarly Hobart had five listings and all five properties went under the hammer, of which two sold.
|Auction highlights this week Saturday, 24 June 2017 (Source: APM)|
|Sydney||3 Mills Rd, Glenhaven NSW 2156, 6 br House, Lumby Hampson||$4,625,000|
|Melbourne||9 Alleyne Av, Armadale VIC 3143, 5 br House, Marshall White Stonnington||$5,925,000|
|Adelaide||11 Warrego Cr, Linden Park SA 5065, 3 br House, Harris Real Estate – Glenelg||$940,000|
|Brisbane||39 Ray St, Wilston QLD 4051, 7 br House, Queensland Sotheby’s International||$3,851,000|
|Canberra||79 David St, O’Connor ACT 2602, 4 br House, McGrath Estate Agents Dickson, Projects||$1,400,000|
|Sydney||242 Moorefields Rd, Beverly Hills NSW 2209, 1 br House, Mint Property Agents||$360,000|
|Melbourne||6/78-80 Argyle St, Moonee Ponds VIC 3039, 1 br Unit, Barry Plant Essendon||$262,000|
|Adelaide||24 Sloan Rd, Ingle Farm SA 5098, 4 br House, LJH Walkerville | Modbury||$313,500|
|Brisbane||26 Lynngold St, Woodridge QLD 4114, 3 br House, LJH Logan City||$283,000|
|Canberra||60 Vanzetti Cr, Kambah ACT 2902, 3 br House, Peter Blackshaw Real Estate – Tugge||$466,000|
Australian Property Journal