Auction market collapses to record low
Over the years, weekend property auction results have become a key barometer the media uses to illustrate the housing market’s strength at a given moment. For decades, it has mostly been a relatively rosy indicator, with headlines about record prices frequently appearing in the nation’s financial and property-focused mainstream media. But amid the current downturn, The post Auction market…
The auction market in Sydney has crashed to a record low, indicating a severe downturn in the housing market. This downturn is the sharpest decline in housing prices since records began in the 1970s. The Sydney auction market, in particular, is underperforming, with SQM Research, the leading provider of auction data, reporting its weakest result since February 2020.
According to the preliminary data from Saturday night, only 24.6% of Sydney properties listed for auction were reported to have been sold as of the release of Domain's preliminary data. This is a stark contrast to a fortnight ago when the preliminary data was also at 27.1%. Louis Christopher, SQM Managing Director, has warned that this is a deeply troubled market if this trend continues.
The Sydney housing market is seeing by far the largest outflows of its population via domestic migration, and with a median house price of $1.66 million, it has a long way to fall before affordability returns to pre-pandemic levels.
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