Auction volumes dip, but clearance rates climb on back of RBA cut

AUCTION clearance numbers are continuing to hold up, driven by the last Reserve Bank rate cut and the fact fewer homes went under the hammer.

With the next RBA meeting around the corner and another rate reduction likely, could the winter mark the start of another housing boom.

Analysts are in general agreement that the market slowdown was the shortest they had seen.

“Early winter auction markets have produced more positive results for sellers generally as the impact of recent interest rate cuts continues to support market confidence,” said economist Dr Andrew Wilson.

 “The reviving Melbourne market also continues to track above 70 per cent clearance rates.”

Cotality’s Tim Lawless also pointed out the solid market performance, even though the volume of homes taken to market eased off with the cooler weather.

The 73.9 per cent preliminary clearance rate was the highest since July last year but the number to choose from shrank, he said.

Melbourne’s preliminary clearance rate of 76.6 per cent on 947 homes was the highest since May 2023.

In Sydney, where 789 homes were taken to auction, agents were reporting a 73.5 per cent result so far.

The emerald city’s Northern Beaches recorded an 85.7 per cent clearance rate.

House prices continued to climb in Sydney, too, according to Dr Wilson’s analysis.

Median houses prices sold at auction stood at $1,975,000, up from $1,883,000 on the previous week. Prices were up 17.9 per cent on the same week last year, when they stood at $1,675,500.

Auction numbers are holding firm over the coming week, with around 2,080 homes currently scheduled to go under the hammer. That figure drops to below the 1,800 mark the week after as the cooler weather dampens activity.