Auction insights
Australian auction clearance rates have improved in August, reaching 67.5 per cent. This exceeds 2022 levels but remains slightly below 2023 figures. The year has been marked by vibrant auction activity, with high bidder participation driven by the imbalance between limited listings and strong buyer demand.
Looking ahead, anticipation of increased property listings, coupled with potential interest rate cuts later this year, is likely to boost market sentiment. This positive outlook is expected to invigorate the auction sector further. As a result, we may see continued improvement in auction clearance rates for the remainder of the year, reflecting a more confident and active property market.
Australian auction clearance rates have improved in August, reaching 67.5 per cent. This exceeds 2022 levels but remains slightly below 2023 figures. The year has been marked by vibrant auction activity, with high bidder participation driven by the imbalance between limited listings and strong buyer demand.
Looking ahead, anticipation of increased property listings, coupled with potential interest rate cuts later this year, is likely to boost market sentiment. This positive outlook is expected to invigorate the auction sector further. As a result, we may see continued improvement in auction clearance rates for the remainder of the year, reflecting a more confident and active property market.
Since early 2023, auction participation has shown a consistent pattern, with fluctuations only during holiday periods. This month, auctions have attracted an average of 4.5 registered bidders, with 2.8 typically engaging actively in the bidding process. These figures are slightly higher than last month’s and mirror those from a year ago.
Interest rate uncertainty remains a primary concern for many potential buyers. Affordability continues to be strained by high financing costs and ongoing price growth, which could dampen enthusiasm in 2024 as buyers become more cautious and look towards potential rate cuts in 2025. This may lead to a slowdown in auction participation rates. However, if listings remain scarce in competitive markets, this could potentially result in more active bidders at auctions.
The Ray White Group has demonstrated remarkable resilience during the traditionally sluggish winter selling period, characterised by muted listing levels. While market dynamics continue to exhibit monthly fluctuations, the upcoming spring selling season is anticipated to result in a surge of listings and heightened activity. Moreover, the prospect of declining interest rates is expected to further invigorate market sentiment and activity. August sales figures reached an impressive $7.42 billion, marking a robust 6.5 per cent increase compared to the same period last year.
This notable annual growth is evident across the nation, with Western Australia’s favourable market conditions leading the charge, boasting a remarkable 33.8 per cent year-on-year increase. South Australia and Northern Territory follow closely, with a substantial 24.7 per cent uptick over the same timeframe. New South Wales maintains its position as the leader in market activity, accounting for $2.28 billion in turnover, an 8.8 per cent increase, while Queensland contributes $1.48 billion, reflecting a solid 5 per cent growth compared to last year’s results.
