Auction Market Trends: What Property Investors Need to Know Now - July 28
Australian property market update for week ending July 28, shows indicators of the market holding strong in Perth and Brisbane and Melbourne showing signs of the start of a market recovery. Property investor should keep an eye on Melbourne over the coming months.
Auction Market Snapshot for June 28. Melbourne showing signs of the beginning of a recovery.
Auction Market Snapshot
This week, the combined capital cities' preliminary auction clearance rate surged to 72.2%, up from 71.1% the previous week. This indicates a strong selling market, which is crucial for property investors to understand.
Auction Volume on the Rise
A total of 1,930 homes went under the hammer this week. This is the highest number since late June, although slightly down from the same week last year (1,973 auctions). Increased auction volumes generally mean more opportunities for buyers and sellers alike.
Final Auction Rates
Over the past four weeks, there’s been an average 8-point drop from preliminary to final auction clearance rates. This suggests that the final clearance rate is likely to settle around 64%. Understanding these trends helps property investors gauge market conditions accurately.
City Highlights
Melbourne: Recorded the highest number of auctions with 840 homes going to market. The preliminary clearance rate was just below 70% (69.8%), up from 66.9% last week and 50 basis points above the 8-week average. For property investors, Melbourne's market is showing strong potential.
Sydney: Continued to record stronger auction results compared to Melbourne, with a preliminary clearance rate of 76.5%, up from 74.6% last week. A total of 711 auctions were held, up from 605 a week ago but lower than last year’s 749. Sydney remains a hot spot for property investors.
Adelaide: Leading the smaller auction markets with an 84.8% clearance rate.
Perth: Posted a solid 70.0% clearance rate.
Brisbane: Recorded a 61.9% clearance rate.
ACT: Came in at 60.0%.
Upcoming Auction Volume
Looking ahead, the volume of auctions is expected to ease. Approximately 1,930 homes are scheduled to go under the hammer next week, with a slight drop to 1,840 the following week. For property investors, understanding auction volume trends can help in planning and strategizing investments.
What This Means for Property Investors
The rise in clearance rates and auction volumes signals strong buyer interest and confidence in the property market. For savvy investors, this is a positive sign of a robust and resilient market. Now is a great time to explore investment opportunities and make informed decisions.
Staying updated on auction market trends is essential for property investors. The current trends indicate a healthy market with strong buyer interest, making it an opportune time for new investors to enter the market.
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