Climbing auction numbers point to a busy autumn in the housing market

Sydney property for sale in the eastern suburbs pictured from the air

Following a cool and calm La Niña summer, the property market is heating up again ahead of the autumn peak.

According to data from CoreLogic, throughout last week ending February 6, a total of 1,786 homes were taken to auction. This figure was up 53% from the previous week, and nearly 40% higher than in February 2021.

Aided by an increase in housing supply, spiking auction numbers signal more opportunities for families and investors hoping to stake out a new home. Buyers are surely investigating options, despite uncertainty around future interest rate hikes.

The growth in auction numbers is set to continue this week with nearly 40% more listings expected. A further 2,467 homes are forecast to go under auction across the country's capitals.

CoreLogic's data indicates that the March and April focus on home sales is set to occur as usual. But compared to last year, a few factors suggest that the market might be moving ever so slightly in favour of the buyer.

To start with, the clearance rate on auctions is slightly weaker than this time last year. While last weekend the clearance rate sat at 74% of all actions, the same time last year the average across the country was almost 80%. Granted these are relatively close.

What does a lower auction clearance rate mean?

  • Less intense buyer demand
  • Ready supply of available properties
  • Market moving in favour of buyers

Unfortunately, this slightly lower clearance rate will probably not translate to lower prices in the short term. Going on recent history, buyers should expect house prices to remain roughly in-line with averages from late December. 

That being said, the increased quantity of homes for sale should mean buyers are less likely to have to settle for substandard homes, and should not feel rushed to make a decision. The expected rise in home sales over the coming weeks will test if the market has corrected after the shocks of last year’s lockdowns.

With more options for potential homes appearing, and a healthy auction scene, it’s the perfect time to research the best home loans. To see our home loan comparisons and guides, check out our Home Loans page for average rates, loan sizes and more.

Home Loans - last updated 13 August 2022

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

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