Homes for Auction Fell Amidst Lockdowns in Australia’s Capital Cities

Homes for Auction Fell Amidst Lockdowns in Australia’s Capital Cities

The Australian real estate market has been growing steadily this year after the uncertainties due to the pandemic in 2020. However, lockdowns may again slow down the economy, including the number of homes for auction and the sales of real estate properties. The slow rollout of the COVID vaccines is seen as one of the main reasons for the breakout, which forced major cities to go into lockdown.

Auction Results for Combined Capital Cities

At the start of the lockdowns implemented in Melbourne, Sydney, and Adelaide due to the Delta Strain outbreak, the expected number of homes to be auctioned was around 2,153. However, the number of homes taken to auction in the capital cities fell to 1,849. The previous week saw 2,097 auctioned homes. At the same time last year, only 1,326 homes were auctioned during the height of the Corona Virus pandemic.

During the last week of July, 74.8% of the auctioned homes were successful. This number is lower than the clearance rate of the previous week, which was 76.3%. The same week last year, the numbers of successful home auctions were at 54.1%.

Collected auction results as of this writing are at 1,509. Of this number, 607 properties were sold before the auction proper, while 509 were sold at auction. In addition, there were 11 properties sold after. The median price of the auctioned properties was $1,050,000.

The majority of the auctioned properties were houses, with a total number of 1,424. Houses had a clearance rate of 78.5%. The remaining properties were units, which had a clearance rate of 60.5%. The median price for houses was $1,115,000, while that for units was $747,500.

Auction Statistics in Australia’s Capital Cities

In the last week of July, Melbourne saw 858 home auctions. This is down from the originally scheduled 1,087 homes but is higher than last year’s 540 auctions during the same week period. There were 967 home auctions the previous week.

So far, only 700 results are at hand, with a 71.9% success rate. Of the number, around 24.1% has withdrawn from the auction. Of course, some homes were sold before the auction took place. Of the 500 sold homes, 53.7% were sold before their auction.  The median price for residential properties in Melbourne was $881,056.

Coming in second, Sydney had 597 auctioned real estate properties. This is lower compared to the previous week’s 769 auctioned homes. Compared to last year’s count that was 594, it is only higher by 3. Around 74.8% of the 523 collected results were sold successfully. Around 22.4% of the number were withdrawn from being auctioned. Out of the 391 homes sold, 61.6% were sold before the actual auction. Sydney’s preliminary auction rate was 77.1% in the previous week, which was revised to 76.6%. Sydney has the highest median price at $1,450,000.

Brisbane is the busiest of the smaller cities, with 169 auctioned properties at a 75.2% clearance rate. The median price of homes in Brisbane was $920,000.

Canberra is the best performing capital city with 96 total auctions and a 94.9% clearance rate. Out of the 79 collected results, 75 were successfully cleared off. The median price for Canberra homes was $900,000. The next best performing city is Adelaide. It had 100 auctioned properties and an 82.3% clearance rate. Home prices in Adelaide averaged at $720,000.

Perth comes with 27 total auctions and a 66.7% clearance rate. Of the 18 collected results, 12 were successfully auctioned off.

Buying a Home? Let Makes Cents Help You.

Buying a home is a significant and expensive investment. Do the necessary research before you take the plunge. Knowledge about the current real estate market will help you make sound decisions and bargain better as you shop for your home sweet home. Browse through Makes Cents to help with your property investment ventures in Australia.

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