Market gains momentum ahead of autumn selling season

The property market has shown positive momentum ahead of the autumn selling season, underpinned by a resurgence in seller confidence noted since the latter part of last year, according to property marketplace Domain.

Its Auction Report for February 2024 has indicated a year-on-year increase in clearance rates across Australia’s combined capital cities, reaching 63.7%. However, the combined regional areas saw a decrease to 43.8%.

Sydney and Melbourne emerged as the only capital cities with annual improvements in clearance rates, with Sydney leading at 69.4%. Both cities, along with Adelaide, recorded clearance rates above 60%.

According to Domain, the period typically witnesses a seasonal uptick in activity, as buyers unsuccessful in previous bids return with renewed enthusiasm to secure properties.

The report suggests that robust auction outcomes, coupled with higher volumes, reflect strong underlying demand. It hints at the potential for further market stimulation should there be timely cuts in interest rates.

All capital cities reported a month-on-month rise in auction volumes, aligning with the expected February increase. This rise also extended on an annual basis, excluding Canberra, indicating a positive shift in seller sentiment.

In line with a national trend, units in Melbourne, Brisbane, and Adelaide reported higher clearance rates than houses, illustrating a shift in buyer preferences.

“The latest data brings good news for buyers, as the market offers more options and indicates growing confidence among vendors,” said Nicola Powell (pictured), chief of research and economics at Domain. “The increase in clearance rates corresponds with the post-January surge, as buyers who previously missed out on properties now eagerly enter the market.

“Clearance rates serve as a key indicator of the property market’s strength. Historically, there is a seasonal uptick early in the year, resulting in higher clearance rates compared to the end of the previous year. While it’s too early to determine the strength of the auction market in 2024, this positive trend sets a promising tone for the upcoming autumn selling season.”

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