Auction volumes hit 19-month high across the combined capitals
Vendor confidence is thriving during this spring selling season, according to Domain’s auction report for November.
Auction volumes have reached a 19-month high across the combined capitals and a 12-month high across the combined regional areas, Domain reported. While auction volumes in most capital cities followed the national trend, Melbourne stood out with a different trajectory. Sydney and Canberra experienced a 19-month high in auction volumes, while Adelaide reached its highest level in 16 months.
In November, clearance rates across the combined capitals remained higher than in the second half of 2022, despite declining for the fifth consecutive month. Conversely, the combined regional clearance rate increased over the month and performed well compared to historical data, Domain reported.
The median auction prices for houses and units saw an annual increase in Sydney and Melbourne. Sydney's median auction house price is now $1,695,314, reflecting a monthly increase of 1.2% and an annual increase of 3.1%. Melbourne's median auction house price stands at $1,068,203, showing a 1.2% annual increase.
“A steady rise in auction listings in recent months, consistent with the spring selling season, has weighed on the strong performance of clearance rates seen in the middle of 2023. Increased choice has eased buyer competition and dissipated the sense of urgency evident earlier in the year,” said Dr Nicola Powerll (pictured above), Domain’s Chief of Research and Economics.
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“The lift in auction listings shows improved seller confidence as the recovery in Australia’s housing market — prices either hitting or close to new records — motivates sellers to list. However, the recent performance of clearance rates seems to indicate a more balanced market, providing buyers with greater bargaining leverage. As we move into 2024, the autumn selling season will be the next big test of the auction market given the normal seasonal bounce that occurs early in the year,” said Powell.
Capital city clearance rates
Looking at the capital city clearance rates, Sydney's rate has fallen below 65%, marking the lowest clearance rate recorded in 2023. However, it remains stronger than most of 2022, with a 6.5-percentage-point increase compared to the previous year.
Melbourne's clearance rate has declined for the fifth consecutive month, dropping below 60% and reaching its lowest point this year. Nevertheless, it still performs well compared to the second half of 2022, with a 1.9-percentage-point increase over the year.
Brisbane continues to have the weakest clearance rate among the capital cities, experiencing a significant monthly decline in November.
Adelaide, on the other hand, remains the best-performing capital city, with an increase in clearance rates in November and a 9.9-percentage-point annual growth, the highest among the capitals.
Canberra's clearance rate also rose over the month, showing the largest increase among the capitals, with a 2.3-percentage-point increase over the year, although outcomes still fall short of historical performance.
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