The auction clearance rate in Victoria rebounded over the weekend on large auction volumes, although the high number of undisclosed results is likely to see the clearance rate downgraded over the week as late results are chased-up.
The Real Estate Institute of Victoria (REIV) reported a provisional auction clearance rate of 64% on 837 results reported to the REIV. This compares to a provisional clearance rate of 60% recorded last weekend on 733 auctions, which was later revised down to 59% once late results were chased-up. With 970 auctions initially planned over the weekend, there are a large number of missing results, which will almost certainly lead to the clearance rate being downgraded as further results arrive.
Although this week’s reported clearance rate is a bit rubbery, given the high number of missing results, it is still way above the same weekend of last year, where a clearance rate of only 49% was recorded on 760 auctions, which happened to mark the low point of last Spring’s selling season. It is also a marked improvement on the 57% clearance rate on 1,013 auctions reported in the same weekend of 2010, when the Melbourne housing market had just begun to turn-down.
The REIV expects the high auction volumes to continue. Next weekend 990 auctions are expected, followed by 990 on the first weekend in December and 930 in the second weekend.
With consumer confidence turning above the 100-point threshold in November, we expect the 60%-plus auction clearance rates to continue for the remainder of this year.
Note: The Real Estate Institute of New South Wales (REINSW) has not updated its auctions data for the weekend, precluding us from providing an update at this time.
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.
