With the arrival of school holidays, the traditional mid-winter housing market trough is forecast to appear in this weekend’s auction market.
According to Domain Group senior economist Dr Andrew Wilson, while still at record levels, Sydney’s booming auction market is showing some signs of fading.
“With the advent of school holidays, just 433 auctions will be conducted this weekend in Sydney, which is well down on last weekend’s 587 but still significantly higher than the 289 conducted over the same weekend a year ago,” he said.
“The most popular suburb for auctions this weekend in Sydney is Surry Hills in the city and east, with nine, followed by Concord in the inner west, Bankstown in Canterbury-Bankstown, and Casula in the south west, which will each host eight auctions this weekend,” he added.
Dr Wilson said Melbourne’s auction market, on the other hand, remains in its best seasonal shape for years.
“With the start of the school holidays, just 443 auctions will be conducted this weekend, which is down on last weekend’s 681 but still significantly higher than the 363 conducted over the same weekend a year ago,” he said.
The most popular region for auction listings this weekend in Melbourne is the west, with 85, followed by the inner city with 69, the north east with 64, the inner south with 53, the outer east with 52, and the north with 49 auctions scheduled,” he added.
Dr Wilson said auction numbers for Melbourne will flatten over July, although activity will remain atypically high for winter as low interest rates, a rising population and an improving local economy continue to fuel the market.