Episode 25
The number of homes being put up for auction across Australia has plummeted as falling property prices and fewer cashed-up buyers shake the confidence of owners looking for the right time to sell
The decline of auction rates and confidence in the market
- CoreLogic – properties taken to auction last weekend was 1,909 – down from the previous year – 2,270.
- The number of homes being taken to market is down on average by 20 percent.
- Sydney, the preliminary clearance rate was 59.1 percent, indicating a classic “buyer’s market”. Property values plummeted by 5.6 percent to record over the past 12 months to a median house price of $863,769.
- Melbourne, the preliminary clearance rate was just 58.6 percent. House values have fallen 1.6 percent over the last 12 months to record a median house price of $709,568
Capital city median home values:
| City: | Annual change in price: | Median value: | Annual housing return**: |
| Sydney | – 5.4 percent | $863,769 | – 2.5 percent |
| Melbourne | – 0.5 percent | $709,568 | + 2.4 percent |
| Brisbane | + 1.2 percent | $494,634 | + 4.8 percent |
| Adelaide | + 0.7 percent | $438,163 | + 4.9 percent |
| Perth | – 2.3 percent | $457,274 | + 1.6 percent |
| Hobart | + 11.5 percent | $435,833 | + 17.1 percent |
| Darwin | – 6.2 percent | $439,596 | – 0.8 percent |
| Canberra | + 2.4 percent | $590,229 | + 7.0 percent |
| National | – 1.6 percent | $554,263 | + 1.9 percent |
*CoreLogic July Home Value Index, includes both apartments and houses
The Analysis
Coming down from the top – Last year was at the peak of the market
- Long term normal averages
- Why is this happening?
- Consumer confidence
- Prices are too high
Property Clock Link: https://www.htw.com.au/month-in-review/
Things move in Cycles
Residential property market goes in cycles
- Supply and demand
- Supply – Properties being built
- Demand – Interest rates, credit availability, population increases
- Demand may be dropping as auction set prices are too high
- People may just not want to pay what people are asking for in the price
- Especially Sydney and Melbourne
Don’t panic
- Be aware, but don’t be alarmed
- News stories are crafted just to sell
- A few weeks is not a trend – Takes some time and may have just been a rainy day
Won’t see a massive drop
- Investment properties will go first
- Expensive to own property