On Tuesday night Mr Scott Morrison held his 2016 “Hot Autumn Nights” Budget party.
While guests were not required to bring presents, it appears that the message did not get through to the RBA Board who turned up early with a beautifully gift wrapped 0.25% cut to the target rate. Plus the Big Banks went “in” on the present for Scott as well and announced they would pass on all of the cut straight away. There is nothing worse than not being able to play with a present at your party because no one thought to give you the batteries.
What is a party anyway without some self appointed “Masters of the Punch Bowl” spiking the fruity concoction and shaking up all the champagne bottles so party-goers get sprayed with foam? The RBA guys know how to have a good time!
It is not just about imported 100 proof debt either, APRA and RBA are often seen squabbling over the Technics SL-1200 decks about who gets to get the “Household Debt” party back on the dance floor. Will it be old “jawboning” hits, some classic upbeat works by Tricky in the Research Department or the old crowd favourite – “Who let the debt dogs out”
Certainly Mr Morrison appeared delighted with another 0.25% cut to the mortgage “bait rates”, as households rushing down to their friendly finance broker and going deeper into debt is the LNP preferred method of economic management. A surge of household debt will help give the economy a bit of zing during Malcolm’s “Long March” election campaign.
With the housing market in the home town of Mr Morrison and Mr Turnbull simmering away quite nicely in 2016, he probably saw no need to really turn up the heat with some juicy first home buyer grant promises in the budget.
They may be for more desperate days to come.
So how did the Sydney “House Party” attendees respond to the budget and the RBA “bait rate” gift?
While the party goers continued to show significant interest in cutting the rug it was more a determined “Pride of Erin” than disco inferno.
The Sydney Morning Herald and Australian Property Monitors report indicates that agents reported 78% of the 523 auctions listed for Saturday – which is about average.
- A solid number of auctions (APM counted 523 and Core Logic 632)
- Clearance rates of 48% or 54% of scheduled auctions (72% or 74% of reported)
- A median of $1,260,500
- A mean over $1,000,000
- Hammer Time – slide back to 31% but still above the average of 29%
- Agents commissions on the sales estimated at about $6M on sales of approx $300M.
Note: In order to encourage agents to help APM collate the most complete stats each Saturday night, the Glass Pyramid is presenting all results as a percentage of the number of Auctions Listed. The reason for this is that agents are more likely to report ‘good results’ sooner and that can tilt the figures when results are presented as a % of what agents have bothered to report on Saturday afternoon.
Anyhow – onto the good stuff!
There are THREE tables this week. The first contains yesterday’s APM’s results pdf sliced and diced. The second contains a summary of recent weeks and the third contains the data and averages for the first 13 weeks of Auction Action fun.
Each week Realestate.com.au publishes auctions results (click here) compiled by the good folk at Core Logic RP . The difference between these results and the SMH/APM results arises because they include all auctions during the week, whereas the SMH/APM results are for auctions listed just on the Saturday. This means that the realestate.com.au number of scheduled auctions is usually higher.
Click on the link to read all the details in their natural habitat but the key “Auction Action” metrics are:
- No of Sched Auctions: 632 versus 523 on SMH/APM
- % of results rep: 73% (463 of 632) (77% last week)
- Number cleared: 343
- Clearance as % of rep: 74% (75% last week)
- Clearance as % of sched: 54% (58% last week)
- Pre-Action Panic: 18% (114) of the sched auctions (18% last week)
- Hammer Time: 42% (267) of the sched auctions (44% last week)
- Seller Sadness: 13% (82) of the sched auctions (15% last week)
- The metrics are reasonably consistent with the SMP/APM results having regard to the differences in reporting rates.
- The reporting rates for the Core Logic rates varies a lot each week and that affects the figures when expressed as a % of the scheduled number of auctions.
Table 1 – Saturday 7 May 2016
Table 2 – Summary of recent results.
Table – Summary of the first 13 weeks of Auction Action