The ANZ is out with a report on the state of the Australian housing market, noting “the trend number of cleared auctions are at a 5 year high”.
Sydney and Melbourne are driving the surge with Sydney clearing more than double the number of auctions compared with this time last year in trend terms, while Melbourne is about 70% higher than last year.
While more often than not the data that you see released – or at least focused on – is the headline or nominal number, the trend is important in a big macro sense as it take out the noise from week to week and month to month.
The ANZ reckons that:
Strong trend clearance rates and home price gains are expected to continue to support solid sales levels across Sydney and Melbourne in particular in the coming weeks.
But it’s not just Sydney and Melbourne – auction clearance rates rising looks like a national phenomenon.
On that basis and with total stock on market way down on this time last year, it seems likely this recent run higher in property prices is going to continue in the run up to Christmas.
Let’s hope it converts to sales for local retailers.