Real Estate Wrap with Leanne Pilkington | 9 December 2024
Welcome to this week’s Real Estate Wrap with Leanne Pilkington, CEO of Laing+Simmons and President of the Real Estate Institute of Australia.
As the property market winds down for the year, several key trends are shaping buyer and seller behaviour, auction outcomes, and home values. Here’s a snapshot of what’s happening across the market.
Auction Activity Slows
Auction activity continues to ease as we approach the holiday season. This week, 923 properties went under the hammer in Sydney, with a preliminary clearance rate of 57.5%—the lowest of the year. Across the capitals, 2,492 homes were scheduled for auction, down from 2,881 last week.
Regional auction results showed varying performance, with Parramatta leading Sydney’s clearance rates at 74%, while premium markets like the Northern Beaches (42.2%) and Eastern Suburbs (45.8%) faced challenges. Central Coast recorded one of the lowest clearance rates at just 22%.
Housing Values Plateau
CoreLogic’s data reveals that national housing values grew by just 0.1% in November, marking the weakest monthly increase since January 2023. Sydney and Melbourne showed signs of downturns, with values falling -0.2% in November and quarterly drops of -0.5% and -1.0%, respectively.
While mid-sized capitals like Brisbane and Adelaide continue to support national growth, their pace is slowing. Perth leads the pack with a 3.0% quarterly gain, though even its growth has softened compared to earlier in the year.
Market Conditions Shift
The spring season saw an increase in vendor activity, with capital city listings up 16% since winter, led by Perth (+33%) and Adelaide (+25%). Sydney and Melbourne listings are at their highest levels for this time of year since 2018.
However, purchasing activity has declined, with Sydney sales over the last quarter estimated to be -15.4% lower than a year ago. Auction clearance rates remain below 60%, and median selling times for private treaty sales are rising, reflecting a shift in market dynamics.
As the year winds down, buyers and sellers alike face a more balanced market, with opportunities for those prepared to adjust their strategies.
Stay tuned for more updates next week!
Transcript
Hey, everyone, Leanne Pilkington coming to you from the car today on the road all day today. With the Real Estate Wrap week ending 8th December. 923 properties went up for auction this weekend, with a clearance rate or a preliminary clearance rate of 57.5%. Now, that is the lowest preliminary clearance rate we have seen all year. So that tells you exactly what’s happening with the market. Buyers are becoming much more price sensitive and unless vendors are prepared to meet the market from a price perspective, they are not selling. So we’re in for an interesting time. Last week, 1,031 properties went up for auction with the final clearance rate at 58.2%, and the same weekend last year, 1,072 properties with the final clearance rate of 57%.
Central Coast: 23 properties at a 22% preliminary clearance rate. We did see some big price increases on the Central Coast and they have come back. And obviously, not all the vendors are prepared to meet that market, which I understand. The Blue Mountains: 15 at 63.6% preliminary clearance rate, Newcastle: 50 at 57.5%, Illawarra: 20 at 43.8%.
Northern Beaches was our lowest clearance rate across Sydney at 42.2%, also only 45.8% in the Eastern Suburbs. So a couple of premium markets are a bit challenged. Parramatta was our highest clearance rate at 74%. We also had better than 70% preliminary clearance in Sutherland and the Inner West. Have an amazing week, and I will be back to you next Monday. Take care.
