Auction numbers are up as vendors take advantage of the strong housing market and fraught competition between prospective buyers. More than 1300 homes were listed for auction over the first five months of the year, up 18.7 per cent compared with the same period the year before. Vendors are reacting to market conditions with 210 additional homes listed to sell by auction this year compared with last.
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All districts, apart from Tuggeranong and Weston Creek, experienced a surge in auction activity. Belconnen had the most auctions, at 340 homes listed over the first five months of the year, an increase of 26.4 per cent compared with last year. Woden Valley experienced the greatest percentage change in auction listings, jumping 37.6 per cent to 183 homes listed for auction, an additional 50 compared with the year before.
A total of 203 vendors in Gungahlin chose to sell by auction this year, up 34.4 per cent compared with last. Auction activity increased by 23.5 per cent to 168 listings in the inner north and 20 per cent to 126 listings in the inner south, an additional 32 and 21 auctions, respectively.
Tuggeranong and Weston Creek were the only districts recording a minor decline in auction activity. Listings declined by 5.9 per cent to 193 auctions in Tuggeranong and slipped by 4 per cent to 120 auctions in Weston Creek.
Clearance rates echoed the intense competition between buyers in Belconnen. The district was home to the highest volume of auctions during the first five months of the year. Over May Belconnen also recorded the highest clearance rate at 80 per cent. For the past three months Belconnen was the best performing auction market, producing the region's highest clearance rates.
The inner south recorded the second highest clearance rate over May, at 76 per cent, closely followed by Woden Valley at 70 per cent, Gungahlin at 69 per cent and inner north at 65 per cent. Tuggeranong and Weston Creek had the poorest auction performance, with a clearance rate of 60 per cent and 48 per cent, respectively.
The robust auction market conditions exemplify the strength in demand. Low interest rates have been a key element driving the local market forward, particularly activating buyers looking to upsize. As anticipated, the Reserve Bank of Australia left interest rates at the record low of 1.5 per cent, unmoved since the previous August cut. This will help to keep local market conditions ticking.
Nicola Powell is a property expert for Allhomes. Tweet: @DocNicolaPowell
