The national auction clearance rate across the combined capitals was 66.6% this week compared to 63.7% last week. Research house RP Data has recorded an average auction clearance rate below the 70% mark for the tenth week running.
Weekly clearance rate, combined capital cities
Source: RP Data
The biggest national auction markets saw their clearance rates lift on last week. Sydney’s auction clearance rate edged slightly higher to 71.7% up from last week’s 70.6%, while Melbourne’s was 67.1%, also higher than the previous weeks 63.0%.
Last week’s release of the CoreLogic RP Data Home Value Index revealed that combined capital city home values eased in November by 0.3%, and all signs indicate that the rate of home value growth is now tapering off after peaking at an annual rate of 11.5% earlier this year in April.
This week the median house price across the combined capitals was $631,665, a figure heavily impacted by the booming Sydney market’s median house price, which stands at $830,000. Sydney’s houses are also being snapped up the quickest, with the average time on market just 26 days. Canberra and Melbourne follow closely, at 30 and 31 days respectively.
Capital city private treaty median prices
Source: RP Data
Opportunities in Brisbane and Adelaide
RP Data’s national research director Tim Lawless says that moderating growth after a year of strong values, along with low rental yields, means investors may move to markets that are earlier in their growth phase – like Brisbane and Adelaide – for opportunities.
Much lower prices for housing in these areas will also be appealing to investors, along with first home buyers who are often priced out of the strongest performing cities.
Lawless says that for investors, “the best opportunity to enter the Sydney, Melbourne or Perth market has likely passed”.
Lawless notes that home values will continue to increase over the coming year but says the rate of growth will continue to slow.
Read more of Tim Lawless’ views at Switzer Home Loans.
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