Sydney is forecast to host the busiest auction week of the year as more than a thousand owners try their hand at selling property while the market is still red-hot.
Property data firm CoreLogic indicates Sydney is scheduled for 1439 auctions this week, making it the busiest of the year and up a staggering 78.8 per cent from the same time last year.
Since restrictions lifted in early October, auction volumes have increased by 91.1 per cent.
The auction paddles are not just getting a workout in Sydney either — when counted as combined capitals, Australia will host its busiest week since late March and the fourth-busiest week since CoreLogic’s records began in 2008.
Melbourne is set to host a huge 1651 auctions, Brisbane 250, Adelaide 260 and just one in Tasmania.
The rush to put property to auction comes as many experts highlight signs Australia’s supercharged property market is beginning to cool.
“I think we’re past the peak rate of growth, but in terms of price, the price point of houses will continue to rise higher,” Domain’s chief of research and economics, Dr Nicola Powell, told 9News.com.au.
“We’re seeing the property market begin to cool down with soaring house prices in the last year adding to ongoing affordability pressures affecting buyers’ participation in the market.
“As COVID-19 lockdowns and restrictions come to an end and the sustained high prices appeal to vendors, sellers are beginning to re-engage with the market, increasing supply which in turn offers greater choices for buyers.”
Despite signs the sheer pace of price growth is slowing, there is no indication prices will drop — or even remain stable.
“We don’t expect the Reserve Bank to increase the cash rate in 2022, and there is fierce competition between banks and non-bank lenders, keeping a certain level of downward pressure on mortgage rates,” CEO of RiskWise Property Research Doron Peleg said.
“We expect to see dwelling prices rise by between 5 per cent and 8 per cent in 2022, in the absence of substantial macroprudential restrictions.
“And two years from now, we expect to see dwelling prices that are higher than today.”