No spring in the step for home auction market yet
Auctions scheduled for the next fortnight stands above 4,400 but analysts are cautious about the usually buoyant spring market.
HOMES going under the hammer at auction nudged up to the highest level since June, industry data shows.
While the volume did not reach the 2,000-figure last weekend, clearance rates were up by 5.5 per cent on the previous week. And the number of auctions scheduled for the next fortnight is currently over 4,400.
But analysts are cautious about the coming spring selling season, which is traditionally the biggest of the year.
CoreLogic’s Eliza Owen said: “With spring around the corner, buyers, sellers and property professionals are gearing up for a lift in sales and listing activity.
“But for some sellers in Melbourne, Hobart and Sydney, spring does not necessarily mean that demand will lift.
“Spring can be a popular time for both sellers and buyers alike as blooming gardens show properties at their best – with the added benefit of transactions settling before the holiday season.”
But RBA governor Michele Bullock’s warning that a cash rate cut is unlikely until next year will also be playing into the minds of both buyers and sellers this year.
Last weekend’s clearance rate was mostly driven by Sydney, where 74.6% of auctions were successful – up from 68.0% the week before.
Even though Ray White NSW head of auctions Perry Edmondson-Clark also saw the NSW market showing signs of strengthening, he added a cautionary note about the number of registrations falling slightly “due to the higher volume of stock available.”
Melbourne’s preliminary clearance rate slipped to 67.4% from the 69.5% result the week before.
It has been held below the 70% mark for four of the past five weeks.
SQM Research managing director Louis Christopher said: “The housing markets in Sydney and Melbourne continue to slow, driven by some caution from home buyers and uncertainty by home sellers who have become a little more negotiable in recent weeks.
“Going forward, we can now expect home listings to rise from their Winter lull as we head towards Spring.
“That may well put further pressure on the housing market. However, we also believe any rates’ cuts would lift certainty from would-be home buyers towards the end of the year.”
