Auction clearance rates fell slightly over the weekend in Australia’s two major markets, with both states also recording low volumes.
In New South Wales, a provisional auction clearance rate of 63% was recorded from 396 auctions reported to the REINSW. This compares to a provisional clearance rate of 64% recorded last weekend on 426 auctions, and a year-to-date clearance rate of 61%. The number of homes auctioned was also well below the same weekend of last year when 477 auctions went under the hammer.
In Victoria, a provisional auction clearance rate of 61% was recorded over the weekend on 466 auctions reported to the REIV. This compares to a clearance rate of 62% recorded last weekend on 486 auctions.
Although this weekend’s clearance rate was above the 55% clearance rate recorded in the same weekend of 2011, the number of homes auctioned was -25% lower, with only 466 homes going under the hammer over the weekend versus 623 auctions in 2011.
In fact, auction volumes so far in 2012 are around -19% lower than the same period last year. In August, only 1,670 homes went under the hammer in Victoria, which was -25% lower than in August 2011 when 2,240 auctions were recorded, and -32% below August 2011 when 2,450 homes went under the hammer. However, the auction clearance rate in August 2012 was 63%, which is well above the 58% clearance rate recorded in August 2011, but below the 71% clearance rate registered in August 2010.
Once again, last week’s auction clearance rates published by the REINSW and REIV – 64% and 62% respectively – were more positive than those reported later in the week by RP Data, where clearance rates of 58% and 57% respectively were recorded for Sydney and Melbourne:
Twitter: Leith van Onselen. Leith is the Chief Economist of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.
