Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Monday, 15 June 2015

Auctions tracking higher than last year

Auction markets strong

CoreLogic-RP Data released its preliminary auction statistics from the weekend.

It showed that since the third week of February auction clearance rates have continued to track higher than the equivalent weekends of the prior year.

Despite the "doom and gloom" predicted for property markets the combined capital city clearance rate of 77.8 per cent continues to run appreciably higher than the 65.5 per cent achieved last year from a similar number of auctions.


This continues a long recovery since the national market nadir in the first half of 2012.


In particular, the Sydney market is tracking at close to record levels in terms of its auction clearance rates, with another massive 86.5 per cent preliminary clearance rate reported.


One of my favourite picks of recent years - Wollstonecraft on Sydney's lower north shore - is now beginning to deliver a number of thumping results.

A two bedroom apartment located close to the train station on Belmont Avenue, with a guide price of $950,000, sold for more than $1.3 million on Saturday, some $281,000 above the reserve price.

There was also a massive apartment sale result on adjacent Milner Avenue.

Its heady stuff on the lower north, and the market must surely be approaching its peak some time soon, although exact timings are forever unpredictable.

No fewer than six of Sydney's sub-regions saw preliminary auction clearance rates clubbing at above 90 per cent.

Vegas, and elsewhere...

There are far fewer auctions held in Brisbane, and as such auction clearance rates are a considerably less useful indicator of market sentiment.

Nevertheless over the medium term a definitive trend can be picked out, with the market grinding out a long, slow recovery since the floods of January 2011.


I have spent several years cautioning on this blog about the weakness of the Adelaide economy and underlying labour market, with no net employment being created at all in the state for more than four years.

Nevertheless, a lack of building combined with low interest rates has seen vacancy rates tightening, and the indicators seemingly do point towards moderately rising prices, including the medium term trend in auction clearance rates.


The property markets of Melbourne have continue to defy gravity, supported by low interest rates, despite approvals being pushed through for record volumes of apartments.


The 78.0 per cent preliminary auction clearance rate for Melbourne was also higher than the 69.2 per cent result reported for the equivalent weekend in the prior year.