Auctions booming as tide of confidence rises
Rate-cut fueled optimism, and the prospect of first home buyer incentives, are driving demand across Australia.
A rise in the number of auctions over September coincides with a new survey highlighting a growing feelgood factor.
The number of homes going under the hammer has been above 2,000 for the third week in a row – and another 5,000 properties are listed for the next fortnight.
Strong clearance rates – above 75 per cent for the past four weeks – back real estate analysts’ optimism around a boom in property sales as well as prices over the spring selling season.
Three rate cuts and the prospect of more easing, along with fast-tracked first-time home buyer initiatives, have helped boost sentiment of those in the market to move.
The latest data from NAB’s Residential Property Survey – which measures housing market sentiment – has risen to its highest level in a year.
While there is positive sentiment across the country, Victoria seeing the biggest jump from +16 pts to +36 points.
The ACT also returned to positive territory, climbing to +30pts after two negative quarters.
NAB’s Denton Pugh said: “Spring is traditionally the busiest time of year for property sales, and this year is shaping up to be no exception.
“With recent rate cuts and confidence returning, we’re seeing more Australians, especially first home buyers, taking steps towards buying a home.
“It’s encouraging to see optimism returning – Victoria and the ACT are standouts when it comes to buyer confidence right now, but we expect other states to follow.”
According to real estate agents and developers surveyed by the bank, first home buyers now make up 34 per cent of those interested in purchasing a property – the highest share since 2022.
Victoria led the way for first home buyer interest in the June quarter, followed by New South Wales.
The inevitable effect of this demand will see a significant increase in home prices at the affordable end of the market, according to Ray White’s chief economist Nerida Conisbee.
“Australia’s most affordable housing is experiencing significantly stronger price growth than typical properties,” Conisbee said.
Government incentives and affordability constraints are driving competition for entry-level homes, she said.
