June property market remains hot as homebuyers keep competing

The winter months are usually considered the slow period in the Australian property market, with chilly weather usually discouraging people from attending home viewings. This can see a drop in demand but it seems the usual patterns do not apply to 2021. 

Each week, there are seemingly more ‘for sale’ signs popping up than the week before, and this week, figures released by Core Logic, show that there were almost double the number of houses going to auction in Australia’s capital cities than this time last year. 

The market remains heated.

How many properties have sold?

Across Australia’s capital cities combined this past week, there were 2,418 homes taken to auction, up from 1,251 at the same time in 2020. The current combined capital city clearance rate is 78%, which is an 18% increase on this time last year.

The increase in both volume and successful sale rate is a universal trend across the nation’s major cities. Sydney and Melbourne both saw strong numbers:

• There were 786 auctions held across Melbourne this week, while just 558 homes were on the block this week in 2020.
• The Melbourne auction clearance rate is 71.5%, up 11.4% from June last year.
• In Sydney, there were 1,174 homes taken to auction, compared to 522 in 2020.
• Sydney also had a successful sale rate of 82.6%, up 21% on this week last year.

The smaller capital cities are also experiencing high clearance rates. Brisbane recorded a successful sales rate of 79%, followed by Canberra, which showed 78% clearance. Adelaide experienced a 14% increase on last year, at 74.6%, while 54.5% of property auctions were successful in Perth.

How has this impacted Australian property prices?

The current volume of property going up for auction is currently being met with a substantial increase in demand, so prices are also increasing. Now, across Australia’s capital cities, the average purchase price of a house is $1.21 million, while the average unit will set you back $860,000.

Given these trends, it is more important than ever to ensure you are getting the right home loan for you. Higher prices are making it tougher to get into the market, though there are a range of home loans available at present that offer lower interest rates and also require smaller first deposits.

Visit Mozo’s home loan hub to calculate and compare the latest rates from a wide range of lenders.