Capital city auction volumes to peak this weekend, says CoreLogic
This weekend’s auction activity will be the busiest since May and is likely to dip as soon as next weekend, according to CoreLogic.
The 2719 homes on offer this weekend could mark the peak of capital city auction rates for the season, with Melbourne leading the pack, CoreLogic says.
As the year comes to a close, auction volumes have risen 7.2 per cent week on week. The latest figures indicate this week will be the busiest since late May when 3226 houses were on offer.
Last week, 2537 homes were for sale and auction volumes have been growing steadily.
But that growth could begin to wind down as soon as next week as CoreLogic predicts auction volumes of about 2300.
This buzzing auction activity is a product of seasonality, says CoreLogic head of research Eliza Owen. Auction volumes in the same period last year were at 4981 homes, smashing records since data collection began in 2008.
“This year has been marked by a very lacklustre spring selling season … We’ve seen declines both in the number of people in the market to buy and in the amount that people are able to borrow,” she said.
“While we do talk a lot about the spring selling season which technically ends in November on the auction market, it actually does usually see a peak midway through December.”
Despite the RBA imposing an eighth successive increase in rates and subsequent mortgage stress, there was currently no apparent trend of forced property sales, Ms Owen said.
“Both the amount of properties are going up for private treaty, and auction sales are actually low relative to what we would usually see this time, so that indicates to me that there’s not a lot of forced selling; it could be a bit of a test to that in 2023,” Ms Owen said.
This weekend, Melbourne will have 1207 homes on offer – the city’s busiest since mid June; Sydney has 988 auctions scheduled.
Brisbane will host 180 auctions, Adelaide 178 and Canberra 143.
The combined capital city clearance rate is down compared with 2021. Last week’s figure had a weekly boost to 57.8 per cent, however at the same time last year the rate was 66.3 per cent.
The promising figures come as CoreLogic released a report revealing just how much more borrowers on fixed-rate mortgages could pay based on the cash rate’s forecast to grow.
Looming over Sydney homeowners’ heads is an increase of $2000 in monthly repayments. Homebuyers in Australia’s most affordable capital city, Darwin, are likely to pay an average of $863 more per month.
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