Housing market appears resilient heading into spring
Home values and auction clearance rates are up heading into the spring selling season.
Figures from CoreLogic show capital city home values were up 7.4% for the year to 28 August. The number of properties listed for sale has also risen, up 3.6% over the last 12 months.
The auction market appears to be gaining strength as spring approaches, with the capital city auction clearance rate hitting 76.6% on the weekend. Sydney saw an 81% clearance rate from 762 total auctions, and Melbourne recorded a 79% clearance rate from 1,046 auctions.
“The upcoming spring season will provide a timely test of the housing market’s resilience to a slowdown, with listing numbers expected to show their seasonal rise over the coming months and subsequently auction markets to also see an increase in activity,” CoreLogic head of research Tim Lawless said.
Lawless said CoreLogic’s August house price results were expected to show a rise, but would also demonstrate the “two-tiered dynamic” in the housing market.
“Sydney and Melbourne dwelling values are rising at more than 1% month on month with more subdued housing market conditions across the remaining capital cities. The strong housing market conditions in Sydney and Melbourne coincide with the highest clearance rates in a year as well as low advertised stock levels and a reasonably steady rate of mortgage demand,” Lawless said.
Sydney and Melbourne also had the lowest time on market for properties. Both houses and units spent a median time of 30 days on the market in Sydney, while houses in Melbourne spent 30 days on the market and units spent 33.