Here are the auction clearance rates being reported for the week. Adelaide (88%), Canberra (85%), Melbourne (79%), Brisbane (71%) and Sydney (88%). This is pretty consistent with the previous weeks results indicating the property market still has a glut of buyer demand. One noticeable difference however is the number of homes that were taken to auction this week (2,163) compared to the previous week (1,793). This suggests that in February more sellers are entering the market in attempt to take advantage of the surging prices. Buyers are experience FOMO and this is certainly helping drive competition and prices up. Figures for listings while up over the previous week are still a fair way behind with the number of properties listed over the last year down 19.1%.
Where to from here? Well, this week Westpac adjusted their forecast now suggested that property values will rise 20% in the next two years. The unemployment rate declined in January to 6.4% as more jobs were created and many of those who lost their jobs in COVID have now been recovered. Buyer confidence is back, and the retails sector is good sign of this. Interest rates will remain low for some time however so will wage growth and inflation and this I suspect may have some influence on buyer demand. As prices increased affordability may reduce.
One consistency remains true for the property market and that is buyers need to see good value. While they are happy to pay higher prices, properties that present well always outperform those that don’t. If buyers need to renovate and classify properties as needing work, they will reflect this in their offer price. It appears that quality homes and those that offer good ‘liveability’ are outperforming those which don’t. According to Michael Yardney, ‘liveablity’ means Proximity, Mobility and Access to jobs. I’d add that ‘liveability also refers to what a home offers in preference for one’s lifestyle. i.e., low maintenance, space to move, entertainment factors and more commonly options for dual living.