Auction levels hit record highs during the weekend while property prices rose for the 14th consecutive month despite expectations the property sector would wind down more drastically.
In the past 12 months, median dwelling prices have increased $126,700, or $2437 a week, according to Corelogic’s results for November.
The home value index recorded a 1.3 per cent rise, the softest rise since the market’s cyclical peak in the rate of growth in March at 2.8 per cent.
Based on median values, capital city houses were now 37.9 per cent more expensive than capital city units, the largest difference on record.
Meanwhile, auctions reached a record high with 4261 homes under the hammer at a clearance rate of 71.4 per cent, exceeding the previous high of 3990 in March 2018.
Melbourne had the lion’s share of auctions— 1891—while the usually quiet Canberra, Adelaide and Brisbane markets continued to pick up pace.
Brisbane recorded the highest home value growth for November, 2.9 per cent, the state’s highest since October 2003.
Adelaide recorded its highest growth rate since February 1993.
Perth nudged into positive territory rising 0.2 per cent, after prices decreased last month while Darwin prices dropped 0.4 per cent.
Auction volume and change in home values
|Location||Month||Quarter||Annual||Auction Volume, week to 28 Nov|
^Source: Corelogic Hedonic Home Value Index, November 2021
Corelogic research director Tim Lawless said the capital city trends were showing greater diversity with conditions across Sydney and Melbourne slowing sharply compared to smaller cities.
“Relative to the larger cities, housing affordability is less pressing, there have been fewer disruptions from Covid lockdowns and a positive rate of interstate migration is fuelling housing demand,” Mr Lawless said.
“On the other hand, Sydney and Melbourne have seen demand more heavily impacted from affordability pressures and negative migration from both an interstate and overseas perspective.”
Despite this, Melbourne recorded its highest number of auctions since March when 1899 homes went under the hammer.
The majority of listings were in the less than 20km from the CBD with Reservoir, Coburg, Glen Waverley and Richmond recording the highest volumes.
REIV president Adam Docking said the strong numbers were welcomed by home buyers.
“An increase in property supply over the next few weeks is good news for buyers, following a long period with fewer listings, but sustained demand has, in many instances, played a role in lifting prices,” Docking said.
Victoria’s auctions were 35 per cent in the CBD, 43 per cent in middle Melbourne, 17 per cent in the outer suburbs and 5 per cent in regional areas.