#21

Spring Auction Market Kicks Off with Surprises and Price Shifts

The spring auction season officially started this weekend with mixed results. While Sydney and Melbourne held steady with solid clearance rates, smaller markets saw a sharp drop in activity.

The national clearance rate dropped to 58.8%, down from 67.6% the previous weekend and 62.8% this time last year. Auction listings also fell, with 2,025 auctions compared to 2,205 the week before, though still above last year’s 1,819.

Sydney Auction Highlights

• Clearance Rate: 71.9% (steady from last weekend)
• Listings: 792 (down from 912)
• Median Price for Houses: $1,760,000 (up from $1.61M)
• Top Sale: A 3-bed house in Bronte sold for $7.3M
• Lowest Sale: A 2-bed unit in Guildford sold for $422,500

Melbourne Auction Highlights

• Clearance Rate: 66.9% (slightly up)
• Listings: 949 (down from 993)
• Median Price for Houses: $1M
• Top Sale: A 4-bed house in Malvern East sold for $3.22M
• Lowest Sale: A 1-bed unit in West Footscray sold for $298,000

With lower listings but steady results, the market is expected to gain momentum as spring continues.

Massive 7.9% Surge in Property Listings – Is Now the Best Time to Buy?

Spring has brought a wave of new property listings, giving buyers more choice and leverage in the market.

According to SQM Research , 249,523 properties were listed for sale in August—a 7.9% increase from the previous month and 11.1% higher than last year.

For buyers, this surge means less competition and more time for due diligence, increasing their negotiating power.

Sellers, however, will need to up their game with stronger marketing strategies and be more flexible on price to attract potential buyers.

Australia's Economy Stalls: Could Interest Rate Cuts Be Next?

The first interest rate cut may be on the horizon after new data revealed Australia’s economy is growing at its slowest annual rate since the 1991-92 financial year (excluding the pandemic).

GDP increased by just 0.2% in the June quarter and 1.5% during the 2023-24 financial year, according to the Australian Bureau of Statistics . However, with population growth outpacing the economy, GDP per person actually fell by 1.0%, meaning while the economy grew, individual prosperity shrank.

The Reserve Bank of Australia (RBA) has been raising rates to cool the economy and combat inflation, and the data confirms it’s working. With inflation falling and unemployment rising, the RBA could soon pivot and start cutting rates, potentially leading to lower mortgage costs.