Market Update on Auction Results-Will 2022 be the peak due to interest rate rises?

National Auction Market Preview

Auction volumes were up 38.7% week on week as auction activity surges in the larger capital auction markets.

This week 2,467 capital city homes are scheduled to go to auction, up 38.7% from the 1,779 auctions held last week. Compared to this time last year (1,496), this week’s volumes are up by nearly 1,000 auctions and up 85.5% compared to the 5-year average (1,330).

Auctions this week

Melbourne is set to host the most auctions this week, with auction activity expected to exceed 1,000 for the first time this year. Sydney is set to be the second busiest auction market, with 950 homes across the city set to go to auction this week. This is up 58.3% compared to last week (600) and up 52.0% compared to this time last year (625).

Summary of last week’s results

Clearance rates rose across the larger capital markets while volumes surge across the smaller capital cities. An overflow in auction volumes continued to be a feature of the 2022 auction market, with last week’s auction volumes up 36.4% compared to this time last year (1,304) and more than double the 5-year average (827). 

Capital City Auction Statistics for the w/e 6 February 2022

Are prices set to peak in 2022?

New property listings soared in Sydney during the same month the Omicron wave peaked in Australia.

PropTrack economist Angus Moore said while the growth was low over the Christmas period, most markets in Sydney were up from the year prior. We’ve got very strong buyer demand. There has been a lot of price growth over the last two years. “People are looking to lock in those gains that they have made over the last couple of years and so there has been a lot of activity in the market. ”The Northern beaches was up nearly two-thirds compared to the same time last year as a result of more buyers moving beachside while working from home. He said market activity was likely to stay strong over the next few months but that a potential interest rate rise towards the end of the year could dampen buyer demand.