Money How auction clearance rates in Sydney and Melbourne compare to recent years

02:06  13 may  2018
02:06  13 may  2018 Source:   businessinsider.com.au

Australian clearance rates failed to bounce last week despite fewer properties going under the hammer

  Australian clearance rates failed to bounce last week despite fewer properties going under the hammer Australian housing clearance rates fell to the lowest level in over two years in early May. Preliminary data from CoreLogic suggests they may have fallen even further last week, pointing to further downside pressure prices.Australian auction clearance rates fell to the lowest level in over two years in early May, driven by weak results for Sydney and Melbourne, Australia's largest and most expensive property markets.

Over recent weeks, auction clearance rates across the nation’s two largest housing markets ( Sydney and Melbourne ) have been While comparing auction volumes and clearance rates to a year ago is valuable, it is much more valuable to look at how these metrics compare across a number of years .

Auction clearances rates are soft for a fourth week in a row. Sydney and Melbourne home prices just bounced back. Over the same weekend last year , the clearance rate was 66.4 percent on auction volume of 2

a close up of a sign© Provided by Business Insider Inc Home prices in Sydney and Melbourne, Australia's largest and most expensive property markets, have been falling for several months.

The median Sydney price has now fallen by 3.4% over the past 12 months, the steepest decline since mid-2009. Melbourne prices, while still positive over the year at 3.7%, are also growing at the slowest pace since April 2013.

Reflecting those trends, auction clearance rates in both cities are also at multi-year lows.

Here's where Sydney clearance rates currently sit compared to recent years. The chart was posted by Cameron Kusher, research analyst at CoreLogic, on Twitter today.

Sydney auction clearance rates rebound as fewer homes are taken to market

  Sydney auction clearance rates rebound as fewer homes are taken to market Auction clearance rates picked up last week as total volumes declined by 11.5%. The Sydney market outperformed Melbourne, with a preliminary success rate of 66.9%.Preliminary auction clearance rates in Australia picked up last week as the total number of auctions declined.

Auction clearance rates across Australia’s capital cities remain below the levels seen earlier this year , reflecting softer performances from Sydney and Melbourne , the nation’s largest housing markets.

In the same corresponding week in 2016, Sydney ’s final auction clearance rate stood at 73.7%. While not to the same scale as Sydney , clearance rates in Melbourne are also significantly lower than the levels seen earlier this year .

a close up of a map© Provided by Business Insider Inc

And here's the same chart, only for Melbourne.

a close up of a map© Provided by Business Insider Inc While clearance rates move around from week-to-week, the levels in both Sydney and Melbourne are lower than what's been seen in prior years.

That fits with other most other housing market indicators which have also softened recently.

The slowdown in Sydney and Melbourne coincides with the introduction of tighter lending standards, especially for interest-only mortgage loans, introduced in early 2017.

Affordability constraints, diminished activity from local and foreign investors, along with a general cooling in sentiment towards the outlook for prices, are other factors that have contributed to the recent pullback in prices.

Brown-inspired Roos beat AFL Giants in AFL .
<p>Ben Brown has booted five goals in Hobart to lead North Melbourne to a 43-point AFL win over Greater Western Sydney.</p>Kept scoreless in Saturday afternoon's first half, Brown starred in the 'premiership quarter', as the Kangaroos powered home to a 17.10 (112) to 9.15 (69) victory.

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