The national auction clearance rate has jumped slightly after months of pain for sellers, signalling a possible spring “revival” for the country’s troubled property market.
Winter has ended with “positive” signs for the market following a rise in clearance rates for most capital cities on Saturday, according to property analysts at Metropole.
The national auction clearance rate improved slightly on the final weekend of winter. Peter Rae
The national weekend auction market reported an average clearance rate of 47.3 per cent, with every capital city except Adelaide recording an increase compared to the previous week.
While the average figure is still far below the 69.9 per cent figure for this period last year, property economist Dr Andrew Wilson said this was an indication that the warmer months might bring improved buyer confidence.
“Auction markets have mostly continued to improve over recent weeks and are clearly providing early indications of the usual spring revival in buyer and seller activity,” Wilson said.
In the competitive Sydney market, the clearance rate hit 62.2 per cent for the past week, the highest seen since early June.
The median auction price in the NSW capital reached $2.011 million – a sharp rise from last week’s $1.8 million.
Most capitals except Adelaide recorded an increase this week. Joe Armao
Melbourne sellers also experienced some joy over the weekend after the clearance rate hit 62.5 per cent.
The median price for Melbourne properties sold at auction during this period hit $1.066 million, compared to $967,500 the previous week.
Brisbane’s clearance rate improved slightly to 24.78 per cent in a tough market, while Canberra recorded a 49.6 per cent clearance rate.
In Adelaide, it was a tough seven days for sellers going to auction after the rate dropped significantly from 50.7 per cent to 37.6 per cent, despite seven more homes going under the hammer.
The final weekend of winter offered some green shoots of hope in the midst of a post-budget auction slump.
A perfect storm of rate rises and property tax changes resulted in home values falling to a four-year slump.
The government’s changes to negative gearing continue to put off investment buyers, however winter is traditionally a weaker time for property sales.
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