Andrew Wilson: Home auction market remains robust

The Canberra home auction market continues to produce robust results with restored and rising confidence driving buyer and seller activity.

Canberra recorded an auction clearance rate over March of 71.1 per cent, which was higher than the 67.4 per cent recorded over February and also ahead of the 69.3 per cent rate of March last year.

The Canberra March clearance rate was just below the leading capital city result of 72.7 per cent recorded by the Melbourne market but well above all the other capitals.

Although auction clearance rates are rising in Canberra, average weekend listings fell over the month, down from 49 to 43, and also below the 52 averaged over last March. An earlier Easter this year may however have had an impact on auction numbers in the local market compared to last year.

The median auction price for Canberra auctions increased by 0.4 per cent over March to $680,000 and was 1.9 per cent higher than the $667,000 recorded over March last year.

Belconnen reported the highest regional clearance rate over March with 78.2 per cent, followed by Woden Valley (77.4 per cent) and Canberra Central (74.5 per cent).

Belconnen also recorded the highest auction listings over March with 63, followed by Canberra Central and Tuggeranong, each with 52. Canberra Central recorded the highest median auction price at $805,000, with next highest Weston Creek at $760,000, and Belconnen the most affordable with a median of $558,000.

Canberra has reported its highest March clearance rate on record this year, with the local market continue to rise, fuelled by historically low interest rates.

Auction activity in Canberra will continue to rise through to the Queen’s Birthday holiday break in June, which will signal the beginning of the quieter winter auction market. The local market can be expected to continue to produce robust and consistent results following a clearly confident and resilient beginning to the year.

Dr Andrew Wilson is Domain Group chief economist. Twitter: @DocAndrewWilson – My Property, 2UE Fridays, 2-3pm, Saturdays, 12.30-1pm.