Auction clearance still lousy

By Leith van Onselen

Auction clearance rates over the weekend were 59% in Sydney and 55% in Melbourne. This compares to a year-to-date average of 62% and 61% respectively, according to the Real Estate Institutes of New South Wales and Victoria.

In New South Wales, the clearance rate of 59% was an improvement on last week’s 55% and the clearance rate of 53% recorded in the same weekend of last year.

Auction numbers were down, however, with only 338 auctions reported, compared with 434 last week and 367 on the same weekend last year:

In Melbourne, the clearance rate of 55% was down on last week’s 58%, but up on the 53% clearance rate recorded on the same weekend of last year.

Auctions volumes were also down sharply, with only 331 auctions reported compared with 482 last week and 479 in the same weekend of last year.

July is typically one of the slowest months of the year for auction activity, so the low auction volumes are, to some extent, seasonal. That said, the chronically low clearance rate would likely alarm the industry, which probably assumed that sales would pick-up following the recent -0.75% cuts to official interest rates.

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Comments

  1. Rip Van Winkle is snoring out in 2150 – Parramatta. Not much happening.

    How are the number of Sydney auctions stacking up over a longer period?

    The clearance rates may be flattering simply as a consequence of low volumes.

    By comparison that ‘ mid-70s Paddington of the Inner West’ – Marrickville remains quite active with the locals selling out to boat people from the North Shore and Eastern Suburbs.

  2. 46% clearance rate in Melbourne if you count withdrawn, postponed and undisclosed figures as failed auctions.

    • Even less when considering phantom properties for auction when advertised before weekend then disappear and not included in auction results……

  3. 54% in Sydney if you include withdrawn and postponed auctions, a bit up on the 50% last week including the same. Still not a good result, however.