There was a significant drop in the number of auctions across the combined capital cities this week, with 1,262 homes taken to auction, down on the 1,983 auctions held at final results last week.
Most Australians could well assume that recent falls in housing values have translated into more affordable housing. Lower prices, after all, should equate to better affordability.
Housing sales activity slumped during the housing downturn, however the recent trend shows turnover has levelled out as home values rise and mortgage rates reach the lowest level since the 1950’s.
The combined capital cities are expecting 40 per cent fewer homes taken to auction this week, with the AFL grand final being held over the weekend, it looks to be a quiet week for auctions across Melbourne, contributing to the overall lower activity.
Almost nine in 10 properties (87.1 per cent) resold in the June quarter made a profit for the seller, according to CoreLogic’s latest Pain and Gain Report, which provides a view of how resold properties are performing across Australia.
There were just under 2,000 capital city homes taken to auction this week; an increase in volumes of 21% over the week (1,639 last week).
The Australian Bureau of Statistics (ABS) recently published the March 2019 quarter demographic data. The data showed that at the end of the first quarter of 2019 the estimated residential population of the country was 25,287,394 persons, which was 0.5% higher over the quarter and 1.6% higher year-on-year.
The latest quarterly property exposures data from APRA shows that authorised deposit-taking institutions (ADIs) are writing comparatively fewer risky loans although there has been a slight rise over the June 2019 quarter.
Auction activity across the combined capital cities is expected to increase this week, with 1,866 homes set to go under the hammer, up on last week’s final figure which saw 1,639 auctions held.
The latest housing finance data from the ABS is showing that demand for mortgages is rising and this rise is most evident in NSW and Vic where capital city dwelling values are now rising.
The number of homes taken to auction across the combined capital cities increased to 1,633 this week returning a preliminary clearance rate of 75.7 per cent.