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Could the major banks' rate hike announcements already be having an impact on auction clearance rates?
Australia’s clearance rate has experienced a significant decline, with the country’s two biggest markets going backwards.
The national clearance rate last weekend was 68.1 per cent, compared with 72.5 per cent on the corresponding weekend last year, according to APM PriceFinder.
Sales fell 23.7 per cent to 1,258, although the median price for house sales rose 6.9 per cent to $963,000 and the median price for unit sales rose 0.9 per cent to $600,000.
Melbourne’s clearance rate fell from 72.9 per cent last year to 70.4 per cent last weekend.
Sales fell 18.5 per cent to 837, but the median house price climbed 7.3 per cent to $891,000 and the median unit price climbed 5.3 per cent to $543,000.
Sydney’s clearance rate declined from 76.5 per cent to 64.4 per cent.
Sales dropped 35.1 per cent to 348, with the median house price up 17.8 per cent to $1.3 million and the median unit price up 7.3 per cent to $805,000.
The result was predicted by Domain Group’s chief economist Andrew Wilson on Friday.
He cited a fall in clearance rates in Melbourne and, in particular, Sydney, following Westpac’s initial rate rise announcement the week prior as a precedent for what would happen.
“We saw the impact of higher rates, even just the thought of higher rates, last week from that Westpac announcement, where we had a sharp fall in the clearance rate in Sydney and a fall in Melbourne. This is now obviously going to add more impetus to that trepidation of buyers,” he explained.
Outside of the two largest capitals, Brisbane posted a 52.7 per cent clearance rate, with the 29 sales achieving a median price of $625,000.
Adelaide had a 66.7 per cent clearance rate, with 22 properties selling at a median price of $560,000.
Canberra’s clearance rate was 73.3 per cent based on 22 sales at a median price of $741,000.
Marshall White in Melbourne achieved the weekend’s best auction result, selling a five-bedroom house for $5.52 million.
Doyle Spillane achieved Sydney’s best result with a five-bedroom Collaroy house that sold for $4.92 million.
In Brisbane, Belle Property Graceville sold a four-bedroom Graceville house for $1.95 million.
Canberra’s highest sale was recorded by Luton Properties Tuggeranong, which sold a three-bedroom Forrest house for $1.35 million.
Klemich Real Estate in Adelaide sold a four-bedroom Wayville house for $1.21 million.