The recent 75 basis points of cuts to official interest rates since early – May appears to have done little to reinvigorate the auction market, which turned in a lacklustre performance over the weekend, particularly in Melbourne.
According to the Real Estate Institute of Victoria (REIV), Melbourne recorded an auction clearance rate of 57% over the weekend, which is below the year-to-date average of 61%.
The result was based on 553 auctions reported to the REIV, whereby 315 homes sold and 238 were passed-in. The clearance rate was, however, likely inflated by 78 auctions (12% of total) not reported to the REIV (see below graphic from Realestateview.com.au).
Auctions were a little stronger in Sydney, which recorded a clearance rate of 63% over the weekend. The result was based on 490 auctions reported to the Real Estate Institute of New South Wales (REINSW), with 308 homes selling and 182 passed-in. However, a whopping 99 auctions (17% of total) went unreported, which suggests that the clearance rate was likely inflated by a wide margin.
Overall, auction clearance rates remain stubbornly low, especially south of the border, despite significant recent cuts to mortgage interest rates.
I will do this wrap weekly in future.