With home prices rising, confidence in the market has grown. In some suburbs, scheduled auctions have increased substantially as a result.
According to PropTrack's Home Price Index, home prices rose by 0.3% in May. Over the year they have grown by 6.7% and have increased for 17 consecutive months.
The upward trend in prices has been driven by heightened levels of demand. Consistent home equity gains, strong population growth and a tough rental market have contributed to an increase in buyer and seller activity.
Additionally, recent stabilisation in interest rates has boosted the confidence among vendors and those looking to secure a home.
The lift in market sentiment is reflected not only in rising prices but also in the number of scheduled auctions, which have increased by 26% from January to May 2024 compared to the same period in 2023.
In certain suburbs, this trend has been even more pronounced.
Ermington in Sydney and Narre Warren South in Melbourne recorded the greatest increase, with scheduled auctions tripling in these suburbs in the past year.
| Suburb | City/Region | Total scheduled auctions 2024 | YoY % change in scheduled auctions |
| Ermington | Sydney | 33 | 200% |
| Narre Warren South | Melbourne | 33 | 200% |
| Hornsby Heights | Sydney | 32 | 191% |
| Pendle Hill | Sydney | 28 | 180% |
| Tarneit | Melbourne | 161 | 178% |
| Watsonia | Melbourne | 30 | 173% |
| Parkes | Regional NSW | 35 | 169% |
| Bowral | Regional NSW | 43 | 169% |
| Pooraka | Adelaide | 26 | 160% |
| North Rocks | Sydney | 51 | 155% |
Hornsby Heights and Pendle Hill were not far behind. Since the 1st of January, 32 and 28 auctions were respectively scheduled in each area, reflecting a growth of 191% and 180%.
More vendors listed their properties for auction in the Melbourne suburbs of Tarneit and Watsonia as well. Compared to 2023, there were at least 2.7 times more auctions scheduled.
Over the past year, the number of homes for sale has risen, with new listings up 18% since last May. Whether that be in private sales or auctions, this upswing marks an increase in supply and growing confidence in sellers.
However, demand still remains at elevated levels and while there has been some recent improvement, supply continues to fall short, with building activity at its lowest levels in a decade.
Home prices are expected to rise further in 2024 as a result of these market conditions.
