Auction insights
October has marked a shift in Australia’s auction market dynamics, with clearance rates dipping below 65 per cent. While this represents a decline from both 2022 and 2023 levels, the pattern mirrors the seasonal trends observed in previous years’ final quarters. The softening of price growth has notably stimulated buyer engagement, a factor expected to help maintain auction performance through the remainder of 2024.
Despite the recent moderation in clearance rates, several positive indicators suggest a resilient market ahead. Growing anticipation of interest rate reductions in the coming 12 months has begun to influence market sentiment, while the traditional spring selling season continues to drive activity. This combination of factors could provide fresh momentum to the auction sector.
The current market environment presents an interesting paradox: while clearance rates have eased, buyer participation remains robust. This dynamic, coupled with the potential for interest rate relief and seasonal market patterns, suggests the auction sector may find renewed strength as the year progresses. The interplay between moderating prices and sustained buyer interest points to a market that, while evolving, continues to demonstrate underlying resilience.
October has marked a shift in Australia’s auction market dynamics, with clearance rates dipping below 65 per cent. While this represents a decline from both 2022 and 2023 levels, the pattern mirrors the seasonal trends observed in previous years’ final quarters. The softening of price growth has notably stimulated buyer engagement, a factor expected to help maintain auction performance through the remainder of 2024.
Despite the recent moderation in clearance rates, several positive indicators suggest a resilient market ahead. Growing anticipation of interest rate reductions in the coming 12 months has begun to influence market sentiment, while the traditional spring selling season continues to drive activity. This combination of factors could provide fresh momentum to the auction sector.
The current market environment presents an interesting paradox: while clearance rates have eased, buyer participation remains robust. This dynamic, coupled with the potential for interest rate relief and seasonal market patterns, suggests the auction sector may find renewed strength as the year progresses. The interplay between moderating prices and sustained buyer interest points to a market that, while evolving, continues to demonstrate underlying resilience.
Auction participation metrics have shown signs of moderation following an extended period of stability throughout the year. Current data indicates auctions are drawing an average of four registered bidders, with 2.6 taking active roles in the bidding process. While these numbers reflect a slight downturn from previous months, they remain comparable to the participation levels seen at this time last year.
Market dynamics continue to be influenced by affordability constraints, with sustained property price growth and higher borrowing costs affecting buyer capacity. However, several factors suggest a potential shift in momentum. The anticipated easing of interest rates, combined with an increased selection of properties could provide fresh impetus to auction participation.
The convergence of these factors - broader property choice, potential financing cost reductions, and seasonal market patterns - may create conditions conducive to strengthening participation rates back above four percent. However, the extent of this revival will largely depend on the volume and quality of new listings entering the market. An expanded selection of properties could prove crucial in stimulating broader buyer engagement and maintaining competitive tension at auctions.
The Ray White Group has marked a robust spring selling season, characterised by expanded market share, price appreciation, and increased property listings nationwide. While listing authorities indicate sustained strong supply levels ahead, the pace of price growth has begun to moderate in the key markets of Sydney and Melbourne.
Monthly unconditional sales have maintained stability at $8.1 billion, matching the previous period’s performance and achieving a 2.7 per cent improvement compared to the prior year. Notably strong performance has emerged in smaller territories, with the NT and ACT recording substantial year-on-year increases of 43.3 per cent and 9.2 per cent respectively.
Victoria’s market has responded positively to increased listing activity, resulting in a 10.9 per cent improvement in sales (compared to October 2023). While Queensland and New South Wales have experienced more modest annual growth, both markets continue to demonstrate positive momentum.
