Add CategoryMore 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 showed there was an average preliminary clearance rate of 83.8 per cent across the combined capital cities last week, up from 81.1 per cent the previous week.
More homes went under the hammer, with 1287 auctions compared with 884 the week prior.
Sydney was a standout performer, with a clearance rate of 89.1 per cent.
One year ago, the rate for the NSW capital was 77.6 per cent.
Supply is tight, demand is high and price rises show no sign of stopping. Picture: Julian Andrews
In Geelong and Sydney’s inner west, every single residential property that went to auction was sold, the preliminary figures showed.
Other strong subregions included NSW’s Central Coast and northern beaches.
Across the smaller auction markets, Canberra returned the highest preliminary clearance rate of 92.7 per cent, followed by Adelaide (82.8 per cent), Perth (75 per cent) and Brisbane (74.6 per cent).
“Such strong auction results signal further upwards pressure on housing prices amidst extremely tight advertised supply levels and above average buyer demand,” CoreLogic said.
The data comes after the latest CoreLogic Home Value Index showed national prices rose by 0.9 per cent in January and were up 3 per cent over the year.
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Real Estate Institute of Australia president Adrian Kelly has tipped house prices will rise 10-15 per cent across most regions this year. Picture: Julian Andrews/AAP
Regional residential property outperformed the capitals, with prices up 1.6 per cent last month to be 7.9 higher over the year – the strongest annual growth rate in 16 years.
Also last week, Australian Bureau of Statistics figures showed the value of new loan commitments for housing grew for the seventh consecutive month in December and reached a record high.
“The December lending figures reaffirm the resilience of the housing market throughout 2020 and point to a buoyant outlook with investors, first home buyers and owner occupiers all active in the market,” Real Estate Institute of Australia president Adrian Kelly said.
“The figures are of no surprise to us as they support what our members were experiencing ‘on the ground’ during 2020 which were completely at odds to some of the negative forecasting that was taking place.”