Auction Results Suggest Higher Prices

More signs are pointing to higher prices across Australia’s super-tight housing market this year as the stampede to snap up properties continues.

CoreLogic auctions data released on Monday shows a preliminary clearance rate of 84% across the combined capital cities last week, up from 81% the previous week. More homes went under the hammer, with 1,287 auctions compared with 884 the week prior.

Sydney was a standout performer, with a clearance rate of 89%, compared to 77% a year ago. In Geelong and Sydney’s inner west, every single property that went to auction was sold, the preliminary figures showed. Other strong sub-regions included NSW’s Central Coast and Sydney’s Northern Beaches.

Across the smaller markets, Canberra returned the highest preliminary clearance rate of 93%, followed by Adelaide 83%, Perth 75% and Brisbane 75%.

“Such strong auction results signal further upwards pressure on housing prices amidst extremely tight advertised supply levels and above average buyer demand,” CoreLogic said.