Sydney auction clearances crashing

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Core Logic-RP Data released its auction market report yesterday, which posted a fall in the national clearance rate driven by the ongoing slump in Sydney and a sharp drop in Melbourne’s clearance rate.

The preliminary national clearance rate was 60.8%, down from the 63.8% rate recorded last weekend, according to Core Logic-RP Data:

ScreenHunter_10450 Nov. 22 15.06

Sydney’s preliminary clearance rate fell a further 1.7% to 59.3%, whereas Melbourne’s was 64.7%, down significantly from the 69.5% rate recorded last weekend. Clearances in Brisbane, which typically only has a small number of auctions, were 43.6%, down from the 45.9% recorded last weekend. Overall auction volumes (3,087) were down from the 3,226 auctions recorded last weekend:

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ScreenHunter_10447 Nov. 22 15.06

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

ScreenHunter_10448 Nov. 22 15.06
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However, Sydney’s preliminary clearance rate is crashing, down by 12.5% over the year and 34% from the peak:

ScreenHunter_10449 Nov. 22 15.06

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.