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What am I bid: Super Saturday tipped as 3500 homes hit the auction market

Business

Auction activity was tipped to skyrocket this weekend with a super Saturday forecast as 2880 auctions take place around the country.

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Another 639 were scheduled over the rest of the week bringing the total to more than 3500.

The surge in sales will test the resolve of buyers and whether the prospect of another interest rate rise on November 7 would impact their enthusiasm, but NAB chief executive Ross McEwan said his customers were coping with the 12 rate hikes so far.

McEwan told Melbourne radio 3AW that people were adjusting their spending. However, another 0.25 increase in interest rates would add another $114 a month to a $750,000 mortgage, according to Mozo.

CoreLogic said Brisbane, Sydney, Melbourne and Canberra were expecting their busiest auction weeks of the year-to-date.

More than 2880 homes would be auctioned on Saturday and another 639 were scheduled throughout the rest of the week.

It’s the biggest number of auctions since mid-April 2022 (4035).

CoreLogic said the auction numbers were still well below the record in late 2021, however this week’s numbers were up 43 per cent compared to the 2463 held last week and 83.3 per cent higher than this time last year (1921).

Brisbane is not a traditionally strong place for auctions but CoreLogic said it was expecting  the busiest auction week of the year-to-date.

“Excluding Sydney and Melbourne, Brisbane is expecting the busiest week among the capitals, with 241 homes set to go under the hammer, up 43.5 per cent week-on-week and 9 per cent higher than this time last year,’’ CoreLogic said.

“As auction activity has trended higher, the combined capital clearance rate remained relatively stable around the 65 per cent mark (averaging 65.7 per cent since early July), suggesting that the additional supply has been met with a composite rise in demand.

“While this week will likely be the peak in this year’s spring selling season, an early view of auction numbers over the coming fortnight suggests auction activity will remain elevated as we approach the end of spring.’’

The big four banks were all tipping the Reserve Bank board would increase rates by 0.25 per cent when it meets on November 7.

Comparison website Mozo said if the RBA did hike the cash rate another 25 basis points in November, homeowners with a $750,000 mortgage would need to pay an extra $114 a month to cover their repayments.

“Recent Mozo research showed 1 in 6 Aussies are already spending 40-60 per cent of their monthly household income on their home loan repayments, so a 13th rate hike is likely to cause some pain,’’ Mozo’s Rachel Wastel said.

“The jump in rates since May 2022 is quite staggering, and mortgage holders with a $750,000 loan are already scrambling to find over $1,500 more on average every month to cover these rising repayments.

“The new RBA Governor, Michele Bullock, has a chance to grab inflation by the horns by increasing the cash rate, which as it stands is much lower than NZ, UK and the US – that are all above 5 percent.

“However, another rise would place even more pressure on borrowers, many of whom are just trying to keep their heads above water as they struggle with the exorbitant cost of everyday items like fuel and groceries.

“Westpac remains cautious, and with former RBA Assistant Governor Luci Ellis at the helm it will be interesting to see whether her inside insight into the central bank’s workings will see Westpac saying ‘I told you so’ on the 7th November.”

 

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