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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

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.

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 .

How much have auction rates dropped? Based on the most recent data from CoreLogic, total auction clearance The figures clearly show slowing auction rates in Sydney and Melbourne . Other cities have seen fewer auctions compared to this time last year but clearance rates haven't changed all

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.

Pablo Picasso painting worth $70 million damaged before auction

  Pablo Picasso painting worth $70 million damaged before auction Christie's auction house was forced to remove Picasso's 1943 "Le Marin (The Sailor)" from this week's event after the accident.Christie's auction house was forced to remove Picasso's 1943 work of art "Le Marin (The Sailor)" from this week's event after the painting sustained unspecified damage during its final preparations Friday.

Auction clearance rates have fallen below 70% in Sydney and Melbourne for the first time this year , according to data released by CoreLogic today. Here's the final clearance rate by individual capital city last week.

In Melbourne , auction clearance rates plunged from 75.9 per cent to 56.1 per cent in a year compared with Sydney 's slide from 67.7 per cent to 57.6 per cent during the same time frame.

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.

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.

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