️ Highlights:
1. A ‘super Saturday’ event is expected to see a significant increase in auction activity in capital cities, with over 3,500 homes scheduled for auction this week. This is the busiest auction week of the year so far.
2. Auction numbers have been rising steadily since the start of the spring selling season, with weekly increases averaging 7.8% compared to 4.7% last year. This indicates strong demand in the housing market.
3. Despite the increase in auction volumes, the combined capital clearance rate has remained stable at around 65%. This suggests that the rise in supply has been met with a corresponding increase in demand.
4. Melbourne is the largest auction market, with 1,746 homes set to go under the hammer this week. This is a significant increase from last week and almost triple the number from the same time last year.
5. Sydney is also expecting a busy auction week, with over 1,000 homes scheduled for auction. The North Sydney and Hornsby sub region is expected to be the busiest market, followed by the City and Inner South, Inner South West, and Eastern regions.
Executive Summary
The upcoming ‘Super Saturday’ event on 29th October 2023 is poised to significantly elevate auction activity in Australia’s capital cities, marking a notable peak in the spring selling season. A total of 3,522 homes are scheduled for auction, with a substantial 3,883 properties expected to be auctioned throughout the week. This surge represents the highest weekly auction volume since late May 2022 and a significant increase from the previous week’s 2,463 auctions. The anticipated volume is also an 83.3% rise from the corresponding period last year.
Market Dynamics
The spring selling season commenced earlier this year, with weekly auction numbers rebounding from early July and maintaining an average week-on-week growth of 7.8%. This trend contrasts with the previous year’s more subdued growth, which averaged 4.7% amidst rising interest rates and economic uncertainties.
Despite the increased auction supply, the combined capital clearance rate has stabilized around 65.7% since early July, indicating a balanced rise in demand. This rate is slightly higher than the five-year average and markedly above last year’s success rate of 58.8%.
Regional Highlights
Melbourne is expected to lead with 1,746 homes up for auction, marking its busiest week since Easter 2022. Sydney follows with 1,179 homes, with the North Sydney and Hornsby region anticipated to be the most active. Brisbane and Canberra are also set to experience their busiest auction weeks of the year to date.
Conclusion
The auction market preview for the week ending 29th October 2023 suggests robust auction activity, reflecting a healthy property market with balanced supply and demand dynamics. The full report detailing these insights is available for download for those seeking a comprehensive analysis.
For further details or to access the complete auction market preview report, please feel free to contact us.