Strong auction results: Weekly market wrap with Sam DodimeadBack
Another strong weekend of auction results
On Saturday 12 December, Domain reported Canberra recorded a preliminary auction clearance rate of 89%. This result outperformed the week prior in every indicator and demonstrated market capacity to absorb increased volume of scheduled auctions.
In comparison to the previous week, on 12 December there were:
- Seven more scheduled auctions
- 11 more auctions reported
- 20 more properties sold
- Two fewer properties withdrawn
- Seven fewer properties passed in
- $7,295,766 more in gross sales value
- $27,000 higher median
Individual sales results show prospective purchasers remain comfortable bidding to levels far exceeding quoted price guides. It has become common to see sale prices over 20% more than price guide or even reserve. This can be challenging for purchasers who are able to bid confidently at the start of an auction, however, quickly become out-matched by others who perceive greater value and have the capacity to pay more. This demand isn’t focused solely on established properties. In one project I am working on, the suburb record price for an apartment sold in Coombs has been broken four times in as many months, currently standing at $799,900.
I anticipate Canberra’s property market in 2021 will provide incredible conditions offering the greatest opportunities to participants with the capabilities to take advantage of them. Government efforts to stimulate the economy, including lowering interest rates, have unlocked an enormous amount of extra borrowing capacity for Canberrans and placed upward pressure on property values.
Final weeks of the year set for plenty of market activity
CoreLogic data shows changes to property values during the three months to November are on track for annualised growth rate of 14% for houses and 10% for units – an unbelievable result reflecting on property analysts’ forecasts during March and April. We’ve seen analysts update their forecasts at incredible speeds, claiming accuracy, even though they had initially released four different forecasts and, in one instance, followed up shortly thereafter with a fifth. To date, the bulk of those promoted heavily in mainstream media have proven to be wildly inaccurate.
Those who chose to delay purchasing decisions fearing future market conditions and re-entering the market are finding conditions are not as they expect, especially in the new market. Not only have new developments increased in price significantly since March 2020, there is a shortage of stock available and due to settle within three months.
The final couple of weeks left in 2020 appear set for plenty of market activity as buyers take up whatever opportunities they can to avoid having to continue their search in 2021.
With Sam Dodimead, local property professional and host of Canberra Property Podcast where you can get to know the consultants contributing toward deliver of new buildings. Stream from wherever you listen to podcasts.
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