Home auction demand rises in Australia, raising hopes of a market turnaround
- Country’s housing stock stands at almost four times annual GDP, according to Australian Bureau of Statistics
- Number of buyers purchasing auctioned properties has increased from a year ago
Tumbling Australian home prices may have found solid ground amid the worst property downturn in a generation, as the real estate industry experiences a revival in auction demand, data showed.
Australia’s central bank has been closely watching housing market weakness as two years of price declines have eroded wealth, undermining consumer confidence and spending power.
The country’s housing stock is worth about A$6.8 trillion (US$4.8 trillion), according to estimates from the Australian Bureau of Statistics, almost four times annual gross domestic product.
Auctions are a bellwether of demand and real-estate industry participants hope buyer interest has returned, with clearance rates rising across state capital cities.
Buyers are reacting positively to cuts in mortgage interest rates after the Reserve Bank of Australia lowered its cash rate to a record 1.25 per cent and indicated the possibility of further easing
Latest data from property consultant CoreLogic for the week ended July 13 showed increasing numbers of buyers are purchasing auctioned properties compared with the same time last year.
Of 261 auction results reported in Sydney for the week, 190 found buyers, giving a clearance rate of 72.8 per cent – up from the 46.9 per cent reported in the same week a year earlier.