(Australian Associated Press)
Home auctions in Melbourne have bounced back after virtually coming to a standstill during AFL Grand Final weekend, according to this week’s CoreLogic market data.
The Victorian capital had 777 auctions this week, with a clearance rate of 73.8 per cent.
CoreLogic analyst Kevin Brogan said the effect of the AFL Grand Final in Melbourne was quite stark.
“Although Melbourne actually turned out a pretty good clearance rate last week, it was only off 107 auctions, whereas the previous week there had been over 1000,” he told AAP.
He said it was now Sydney’s turn to experience a drop in overall numbers.
“Sydney last week had 894 auctions, and that’s come down to 316, so not quite as dramatic an impact as in Melbourne, but nonetheless that has made a big dent, although there’s a public holiday as well.”
However, the Harbour City was experiencing a bounce back in successful auctions year-on-year, with a 79.8 per cent clearance rate this week ahead of the NRL Grand Final, compared to just 46.1 per cent this time last year.
Brisbane had 92 auctions with a 37.3 per cent clearance rate, while in Adelaide half of the 56 properties up for grabs were snatched up.
Perth had 52 auctions with a 62.5 per cent clearance rate and Canberra had 73.9 per cent of 31 properties turn over.
Mr Brogan said last week’s official cash rate cut to 0.75 per cent may only have a mild stimulatory effect, given that many lenders haven’t passed on the cut in full.
“The reduction in interest rates probably has less of an impact than it used to because we’re already at historic lows,” he said.
“With the change in the serviceability buffer, it’s potentially going to bring some other people into the market, and it might also extend their borrowing capacity a bit, but it’s too early to see that come through at the moment.”
Mr Brogan said the onset of spring normally increases property sales, with some buyers seeing Christmas as a natural “deadline” for moving into a new home.
“You do see that mentality from time to time influencing people, and you do tend to see quite a few auctions as we approach that end of November time,” he said.