More Canberra homes are selling under the hammer. Photo: Graham Tidy Family homes have been the standout performer of the year with sellers reaping the benefit of the strong market conditions. House prices have consistently risen, forging ahead 4.5 per cent annually to reach a median of $643,000 over the November quarter.
It may come as a surprise, under the current low interest rates, that the demand fell by 4.9 per cent over the November quarter to 1328 homes sold. However, the dip in buyer activity reflects the dive in supply. Performance indicators suggest that buyers remain active in the market, as prices drive forward, more homes sell under the hammer and inquiry rates remain high.
A lack of new stock, particularly during spring, has put pressure on the housing market. Supply plummeted by 10.6 per cent to 1629 homes listed for sale on allhomes.com.au throughout the November quarter. The market experienced almost 200 fewer new listings compared to the year prior.
The tightening supply of homes has resulted in a higher proportion selling at auction. Over the November 2016 quarter a staggering 44 per cent sold under the hammer, up from 36 per cent during the November quarter of 2015.
The proportion of homes selling at auction varies significantly depending upon the district. With almost half of homes selling at auction, some districts achieved a substantially higher success rate than the regional average.
Sellers in the Inner South, Woden Valley, Weston Creek and inner north have a greater chance of a successful auction sale. Of the homes transacted during the November quarter 72 per cent in the inner south, 70 per cent in Woden Valley, 68 per cent in Weston Creek and 64 per cent in the Inner North sold at auction.
Tuggeranong was the region’s poorest performing auction market with a mere 24 per cent of homes sold under the hammer. Sellers in greater Queanbeyan and Gungahlin were also the least likely districts to have a successful auction sale with only 25 per cent and 30 per cent of homes sold at auction. Auction performance in Belconnen was just above the overall region level, with 55 per cent of homes sold under the hammer. As the auction success rate differs across the districts it highlights the varied range in buyer and market behaviour.
Nicola Powell is a property expert for Allhomes.
Twitter: @DocNicolaPowell.
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