The number of properties going to auction continues to rise despite interest rate pain causing uncertainty elsewhere in the market.
Increasing numbers of sellers, week-on-week, are putting their homes in auctioneer’s hands despite buyers facing reduced borrowing capacity and creeping mortgage repayments.
Domain’s latest auction report shows there are 1,324 auctions scheduled across the combined capitals this Saturday, which is 8 per cent more properties nationally compared to last week.
Although many aspects of the market are slowing, including capital gains and sums achieved under the hammer, vendors continue to put their faith in the auction method.
The national combined auction volumes is tracking upwards weekly but the figure is lower – meaning less choices for buyers – when compared to the same time last year, Domain’s chief of economics and research Dr Nicola Powell said.
“Auction volumes continue to trend upward this week, up 11.2 per cent from the five-year average,” Dr Powell wrote in the weekly report.
“However, they continue to remain 13.9 per cent lower annually. This aligns with the overall housing slowdown, with clearance rates also remaining steady recently.”
Brisbane and Adelaide have clocked a decrease on the number of properties going under the hammer compared to last week.
Sydney, Melbourne and Canberra have more than last weekend. Sydney and Adelaide have a greater number of auctions than the same time 12 months ago, defying the overall trend.
Domain data also indicates auction numbers are expected to bump up in the coming weeks.
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