Strong Auction Results: Why is the auction market hot right now?

Australians who traditionally have worked in central business districts (CBDs) are now choosing to work remotely, which has led them to purchase properties in the emerging suburbs.

In connection with increasing house prices, which have seen some buyers priced out of certain areas, this has driven an increase in property prices in regional locations 2-4 hours commute from CBD hubs.

The Australian auction market saw a significant rise in the volume and clearance rates last week, despite Easter traditionally being a quiet time for auctions and property sales. The holiday didn’t seem to have an impact this year as demand resulted in an almost 80% clearance rate.

Some experts predicted Easter would see the market cool slightly, but that doesn’t seem to be the case. This is a good reflection on what we can foresee in the coming months – more suburb records, more high clearance rates and ongoing price increases.

Source: CoreLogic

Melbourne triumphed with the highest number of auctions last week, at 1,035, followed by Sydney with 814.

Likewise, Canberra led with the highest preliminary clearance rate at 90.1 per cent, followed by Sydney with 82.8 per cent. Suburb records are a new norm in Canberra.

Several economic factors have contributed to these strong sales, including low-interest rates, flexible lending standards, job security, and buyers’ fear of missing out. However, record-low interest rates are also pushing house prices upwards.

Are you looking to buy your first home at an auction?

Buying your first home at an auction is a thrilling experience. Still, it’s challenging not to get swept away at the moment and bid above your budget.

Check our comprehensive guide on the auction and property market to maximise your opportunity of securing the property at the right price.

To speak with one of our senior mortgage brokers, give us a call on 1300 889 743 or simply fill in our free online assessment form today.