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Auction results – 2017 in Review

Source: The Weekly Times

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2017 was a year of remarkable opportunity and consistency for South Australia’s real estate market; a review of the stunning highs and negligible lows painting an impressive picture.

Analysing the year on a monthly basis, the average selling price is the most consistent performer, never dropping below $600,000, nor exceeding $700,000. Within this $100,000 margin, the figures move in an observable arc, at its lowest in the middle of the year.

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Here, the week with the lowest average selling price rests, at $550,029. This week drags June’s average selling price down to the lowest of the months’, at $602,971.

Clearance rates also reach their lowest around this period, with July’s clearance rate being the year-low of 64.25%.

Interestingly, June is where a spike in recorded auction results can be seen. Increasing from 46 recorded auctions to 80 between weeks, possibly accounting for the drop in averages and clearance rates.

In addition to this, a general downward trend can be seen in the weekly clearance rates over the course of the year.

The drop continues beyond the influence of the surge in recorded auctions, the latter half of the year seeing a shift towards clearance rates below 70%. Only two weeks achieved 70-plus clearance rates from October onwards.

While the clearance rates steadily declined, the the average selling prices soared immediately once the mid-year period was passed. The highest weeks are to be found in late July and April, with the highest average, $770,772, occurring in July. While weeks with similarly high average selling prices of $763,800 and $753,125 occurred in late April.

Each of these sudden peaks can be attributed to clumps of million-dollar sales, the highest earners of the year doing much of the heavy lifting.

April was also the most volatile month of the year, containing the extremely lucrative weeks above, but also the week with the lowest average selling price of the year, $546,067, the result of the Easter weekend.

Although clearance rates appear to be on the decline as of the end of the year, selling prices closed the year on a more positive note – the month with the highest average selling price was December, where $694,784 was reached.

Opinion is divided as to the future of South Australia’s real estate market in 2018. Predictions by “doomsday” economist Steve Keen suggest a possible 10% slump in property prices throughout Australia; while the Association of Foreign Investors in Real Estate, ranks Australia as among the top five most stable real estate markets in the world. 

Trends harming national averages need not hold true for South Australia, as figures from CoreLogic stating that as of December, Adelaide’s housing value has risen to second-highest in the country, even as Melbourne and Sydney fall.

Whatever 2018 has in store for the real estate market of South Australia and Australia as a whole, 2017 closed as a remarkably consistent and lucrative real estate period, surging where other states subsided and providing ripe opportunities for investors.