Quieter autumn auctions might be better for homebuyers

Home selling might be bouncing back just in time for the typically busy pre-Easter market - if we go by the 2,292 homes "taken to auction" across the country last week. 

This figure made it 2023's second busiest auction week so far, say property researchers Corelogic, but at just three months in, this result is more plain chocolate than a Kinder Surprise.

Still, as Easter approaches there's a bit of positivity about for property sellers. Corelogic's early data shows that last week 1,795 homes were offered and of those 71% were sold. This rate of sale is the highest preliminary clearance rate recorded since mid-April 2022 and up 2.6% on last week’s 68%. 

Of course, even a small selling improvement needs to be kept in a broader context. Last week’s final average clearance rate was just 64% nationally, and it's been around that mark the past four weeks. In fact, the last 12 months have been pretty flat as we know.

Another part of the picture we can't forget is that auction numbers rarely tell a national story - even with averages. Melbourne and Sydney typically lead the way both for volume of homes available and those sold and the reasons for this are quite clear-cut: size, population and demand. Although it must also be said that both Melburnians and Sydneysiders have a proclivity for property talk and this undoubtedly fuels the fire. 

In Sydney, autumn property selling has become somewhat of a sport and Easter has become a high point in the action, so to speak. Look back at the pre-Easter sales prior to the pandemic and you'll be wowed by 80% and 85% clearance rates like it was no big thing. Those were sweet days for sellers, like biting into a soft centred egg, while buyers typically encountered something a bit nutty. 

Some now expect things to pick up again, while others are simply hoping for better buying opportunities. Sydney's final clearance rate has held around the 60% mark for the past four weeks, as per Corelogic, and yet the recent auction numbers show a bit of climb. There were around 660 sales held in the city each of the past two weeks, according to Domain. (On February 4th there were just 359, just for a yardstick).

Perhaps a change is actually afoot. Prices are holding in many areas too, and for now, are still very high: For example, Sydney houses currently have a median price of $1.6m, while units are at $930,000 - whopping price tags by any measure. This tells us that there is still demand out there.

Melbourne's prices are a bit lower at $1.1m median and units $695,000 median - still quite high relatively speaking.

It's worth noting that homes can also be rather expensive in other capitals such as Brisbane and Adelaide, but the difference in these cities is there are fewer auctions. This can typically indicate better opportunities to buy privately without the competition that auctions can induce. Might be worth a look for first homebuyers.

So let's look ahead. Corelogic's experts say they are expecting to see over 2,750 homes taken to auction across the combined capital cities next week in the lead up to Easter. In fact, if all of these auctions go ahead, it will be the busiest week for auctions since late May last year (3,226), according to Corelogic.

Similarly, mortgage broker Rebecca Jarrett-Dalton from Two Red Shoes says that property remains popular despite sales being down at this point. She is seeing plenty of activity. But she is also being realistic that buyers might have less to choose from with fewer listings. 

One thing we can be sure of is that no matter how many homes are on offer, real estate will once again come up around the Easter lunch table as it always does.

Wherever you focus, be sure to research! As part of your auction plan, you'll also need a more affordable home loan and our experts handpick the best ones on the market. Be sure to check out our home loans hub to start comparing.