Housing auctions across Australia’s capital cities have reached their highest clearance rates in almost two years, up 13 per cent from last week.
The number of homes taken to auction this week increased to 1,412 returning a preliminary clearance rate of 79.6 per cent.
Housing auctions were up from 1,228 homes in the previous week, with a returning final clearance rate of 73.0 per cent, CoreLogic data shows.
In comparison to the same week last year, auction activity was higher with 1,915 homes taken to auction, returning a lower clearance rate of 54.6 per cent.
Sydney’s performance this week was the highest clearance rate the city has seen since February 2017, also reaching 3 per cent higher than last week. The city’s clearance rate reached reached 84.7 per cent across 500 auctions.
CoreLogic auction market commentator Kevin Brogan says there’s been recent confidence from buyers in Sydney, more so than previous months.
“Volumes are still relatively low, about 200 fewer than last year, but the buyers are confident,” Mr Brogan told AAP on Sunday.
Mr Brogan says that while Melbourne’s numbers are not too far off Sydney has seen the most significant numbers this week.
“We’ve seen the market build on that confidence, overall we’ve seen some really strong results,” Mr Brogan said.
He says the last time a climb in clearance rate was this high was between 2012 and 2013.
“We’re seeing people return to the market as buyers and sellers. This is going to be providing confidence to people wanting to sell their properties in the market,” he said.
In Sydney, the Northern Beaches saw the highest clearance rates, at 92.76 per cent with 27 auctions.
“A successful auction does depends on there being a realistic reserve, and we’re seeing a match between peoples price expectations and buyers confidence,” Mr Brogan said.
North Sydney and Hornsby also saw high numbers, with 91.9% clearance rate.
In Melbourne, data shows that this week houses preform units, which has been the contrary to Sydney.
The median price for units in Melbourne reached $668,750 this week, while in Sydney it reached $825,000.
Houses in Melbourne reached $875,000, significantly lower than Sydney, coming in at $1,300,000 this week, leading to a stronger push for units from Sydney buyers.
Auctions in both Melbourne and Sydney have performed well over the past month, considering the winter slowdown, however a spring surge could lead to downward pressure on clearance rates.
Across the smaller auction markets, Brisbane saw lower auction volumes week-on-week while Adelaide, Canberra and Perth saw an increase in the number of homes taken to auction over the week.
This week’s results are likely to be revised down when final figures come in, but it’s still a considerable jump on figures gathered from the same time last year.
CLEARANCE RATES BY CAPITAL CITY FOR THE WEEK:
Sydney … 84.7 per cent
Melbourne … 79.7 per cent
Brisbane … 67.7 per cent
Adelaide … 72.4 per cent
Perth … 62.5 per cent
Tasmania … not available
Canberra … 68.9 per cent