As we emerge from the winter months, auction volumes across the country reached their highest level since the beginning of June. And as commentary around a housing downturn increases, all eyes are on the spring market.
The talk of a future property downturn continues among many media commentators. And whilst cooler market conditions in many regions - particularly in parts of Sydney - have become evident, it's not necessarily a sign that property won't perform this spring.
Whilst we can’t predict what will happen in the future, we can look at what we’re seeing happen right now. August has seen a steady increase in auction volumes which is indicative of people gearing up to sell in spring. Last week, more than 2,200 properties went to under the hammer across Australia.
Corelogic’s preliminary auction data also shows that clearance rates nationally have performed above the 70 per cent mark for seven weeks consecutively. In fact, last weekend (26-27 August) Belle Property’s auction clearance rate spiked at 87 per cent. The week before saw a 78 per cent clearance rate – two very healthy figures. Heading into the first weekend of spring, we are reassured by the overall market performance we’ve observed in the lead up.
Of course, we recognise that many markets have seen softer conditions when compared to the rampant growth of the past five years, but a softening doesn’t necessarily result in a market regression. As Corelogic pointed out, a fall in value is not a precursor - nor a guarantee - of a downward price correction. The first few weeks of spring should provide more signs as to where the markets are heading.