Auction clearances continue to trend lower

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Core Logic-RP Data released its auction market report yesterday, which posted a decline in the national auction clearance rate amid an ongoing downward trend.

The preliminary national clearance rate was 69.6%, down from the 71.3% rate recorded last weekend, according to Core Logic-RP Data:

ScreenHunter_9578 Oct. 04 19.17

Sydney’s clearance rate fell by 2.8% to 71.4%, whereas Melbourne’s was 67.7%, down from 73.3% last weekend. Clearances in Brisbane, which typically only has a small number of auctions, were 64.4%, up from the 58.9% recorded last weekend. However, overall auction volumes (841) were down significantly from the 2,820 auctions recorded last weekend on account of the AFL/NRL finals and the long weekends in Sydney and Melbourne:

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ScreenHunter_9577 Oct. 04 19.16

As shown in the next chart, Melbourne auction clearances continue to trend lower, down by 1.4% over the year:

ScreenHunter_9579 Oct. 04 19.17
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Sydney’s clearance rate is also coming down from the stratosphere, and is down 5.0% over the year:

ScreenHunter_9580 Oct. 04 19.17

Full report here.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.