Auction volumes continue to rise in capital cities
Capital cities continue to recover from the effects of COVID-19, with auction volumes rising once more this week, according to CoreLogic.
The latest CoreLogic Property Market Indicator found that there were 1,758 homes taken to auction across the combined capital cities in the week ending 8 November, slightly higher than the previous week when 1,747 auctions were held. Of the 1,420 results collected so far, 73.2 per cent were successful.
Last week, a preliminary clearance rate of 77.0 per cent was recorded across the combined capitals, revising down to 71.0 per cent at final figures. One year ago, 2,412 homes were taken to auction and 70.6 per cent of reported auctions were successful.
Looking closer into the capital cities, Melbourne recorded 606 auctions this week, while the previous week also saw 606 auctions held across the city. This time last year, a higher 1,032 homes were taken to auction.
Of the 507 results collected so far in the Victorian capital, 71.8 per cent were successful, falling from last week’s preliminary clearance rate of 75.8 per cent, which revised down to 70.1 per cent at final figures. One year ago, 71.7 per cent of reported auctions were successful.
In Sydney, 853 homes were taken to auction this week, compared with 854 over the previous week and 948 this time last year. The preliminary clearance rate came in at 78.6 per cent this week, while the previous week recorded a preliminary clearance rate of 79.6 per cent, revising down to 73.1 per cent at final figures. This time last year, 76.8 per cent of reported auctions were successful.
Across the smaller cities, Adelaide recorded the highest preliminary clearance rate at 77.8 per cent, followed by Canberra (76.2 per cent). Brisbane and Perth saw lower preliminary clearance rates at 36.4 per cent and 44.4 per cent, respectively.
“The broader trend in auction markets aligns with other indicators pointing to some momentum building in the housing market recovery,” the report said.
“Housing values are now trending higher across every capital city, including Melbourne, average selling time has reduced and mortgage activity has rebounded strongly.”
Home values
Across the major capital cities, Melbourne, Brisbane, Adelaide and Perth saw a 0.1 per cent increase in home value, while Sydney remained stable.
Over the month, Adelaide saw the highest increase at 0.9 per cent, followed by Perth at 0.6 per cent, Brisbane at 0.5 per cent, and Sydney and Melbourne at 0.1 per cent each.
Looking at the year-to-date change, Adelaide, Brisbane and Sydney were the only capital cities that recorded positive changes in home values over the year at 3.5 per cent, 2.0 per cent and 1.5 per cent, respectively.
As of the most recent four-week period, capital city private treaty median price is highest in Sydney and Canberra for houses at $815,500 and $726,000, respectively, and highest in Sydney and Melbourne for units at $635,750 and $570,000, respectively.
Perth remains the most affordable capital city for houses and units, with median prices at $470,000 and $360,000, respectively.
Private treaty sales represent around 85 per cent of all dwelling sales across the country, according to CoreLogic.
Meanwhile, average time on market for houses was longest in Darwin at 63 days, followed by Brisbane (51), Perth (48), Adelaide (36), Sydney (35), Canberra (35), Melbourne (34) and Hobart (27). For units, Darwin also recorded the highest number at 85 days, while Hobart was also the lowest at 29 days.
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