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Tuesday 24 April 2018

Divergent auction trends

Auction trends

Not for the first time in the past half decade, an auction market dichotomy emerges for Sydney.

The preliminary clearance rate of 66.4 per cent this week was lower than the 72.4 per cent recorded last year, according to CoreLogic data.

Melbourne sank to 63.8 per cent from 75.2 per cent a year earlier. 

The other capital cities don't have so many auctions. 

Source: CoreLogic

So far in 2018, counterintuitively apartments in Sydney have often fared better than houses.

Perhaps this is a function of the Royal Commission and tighter lending standards presently underway.

With chronic traffic congestion issues being experienced as the light rail is very slowly being constructed, I've been interested to see whether this has impacted buyer patterns.

It's hard to say, definitively.

In the Eastern Suburbs, the auction clearance rate has often been strong, and indeed the preliminary rate was above 80 per cent this weekend. 

In the Northern Beaches, it was even higher. 

Source: CoreLogic

At the other end of the scale, the clearance rate in Parramatta was only 36.8 per cent.

A stroll around the sub-region explains one of the major reasons why....lot of construction.

At the regional level, Geelong and now the Hunter Valley continue to shine.

Very slow news day yesterday, evidently(!), but there will be lots of interesting stuff to look at this morning, including inflation and regional demographic trends.