Home buying picks up at auction: Are we headed toward a busy Easter property season?

By JP Pelosi · · 3 min read
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Getty Image: Sydney houses

Key points of this story:

  • The Aussie property market appears to be picking up ahead of Easter.
  • The national auction clearance rate jumped to 76% on the weekend of 10 February. 
  • The median price is still high in Sydney ($1.5m), though is lower in Melbourne ($1m).
  • Some Variable home loan rates are holding at around 6 - 6.50% and might drop in 2024.
  • Home loan comparison is crucial to a successful home buying strategy. 

Home auction clearance rates are ticking up and as we approach Easter, that might mean the property market is about ready to hatch.

We can gauge buyer interest fairly well by observing weekly auction clearance rates, and this past weekend the national clearance jumped to 76%, up from last week’s 74%, according to CoreLogic.

It’s a small rise but city-based figures reveal a bit more. Australia’s largest market, Sydney, has notably ramped up - the clearance rate in the city hit 72% on 10 February, where 407 sales were made on 568 reported auctions, says Domain. At the same time a year ago, the clearance rate was just 68%. Perhaps even more telling is Sydney’s median price, which remains quite high at $1.5m.

So while it might shape up as a sweet time for sellers, how might buyers fare?

Sydney and Melbourne property price points

Of course the median is the middle, so in the mix of Sydney sales you can expect some rather high prices, including a three bedroom house in Caringbah South that recently sold for $2.37m and a four bedroom house that sold in Gordon for $3.45m, as per Domain.

That’s the upper end. There were also more reasonable price tags: a two-bedroom unit in very centrally located Neutral Bay sold for $765,000, while a three bedroom unit in Rockdale sold for $850,000 - both seemingly good prices in this high demand market. 

Melbourne was similar, climbing to a 64% clearance rate last weekend, after posting just 61% at the same time a year ago. The median there was a more modest $915,000, perhaps presenting a good opportunity for younger buyers to break into the market.

Just as an example, a two bedroom townhouse in popular Footscray sold for $740,000, while a three bedroom house in Malvern East, just a two minute drive from Chadstone Shopping Centre, went for $1m.

What does this all mean? Momentum in the home buying market

The real estate year started slowly as might be expected, with the time it takes to sell a home slowing at the end of 2023 and into January - there were just fewer people looking to buy. However, February has seen a rise in activity, with the combined capitals clearance rate shifting significantly higher compared to the final weeks of 2023, when the clearance rate fell below 60%.

This week past hit their highest auction clearance level in over 18 months nationally and the highest in Sydney in over two years, as per CoreLogic. And this trend started in the first week of February, so there’s clearly a stirring interest among buyers as the year progresses.

How does more activity affect your home loan?

Ultimately this means prospective home buyers need to start researching both their suburbs of interest and potential home loans. 

The first thing to compare is home loan interest rates because whether you’re looking at a house that’s over $1m or a unit that comes in at $750,000, you will likely need to borrow a fair chunk of the price. 

For example, a standard loan-to-value ratio of 80% will require you put down a 20% deposit and to borrow the remaining 80% of the property’s value. So, that would mean $200,000 down payment on a $1m property, borrowing $800,000 to be repaid with interest. 

Comparing home loan rates to reduce your costs

You can see with figures like these that the interest rate you get matters greatly, even if it is a variable rate that can come down over the course of 2024. 

Right now the average variable home loan rate is 6.85% in the Mozo database, but some sound research could see you secure a variable rate that’s notably lower. For instance, Up’s Home Variable Rate loan offers 6.15% (6.15% comparison) at the time of writing, Ubank’s Neat Home Loan offers 6.09% (6.11% comparison) and Unloan has a 5.99% (5.90% comparison) rate.

It’s worth checking the cost of your home loan repayments based on these different interest rates, no matter which property you’re eyeing off. Our home loan calculator might help.

Otherwise, start with a simple side by side comparison below, where we have listed some of the top home loans on the market as chosen by our Mozo experts. 

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 27 July 2024 Important disclosures and comparison rate warning*

Promoted

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

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