Auction clearances run hot, but volumes down

CoreLogic released its auction report yesterday, which revealed another weekend of strong auction conditions, with the national auction clearance rate falling to 76.2% from 80.8% last week, and remained well above the 68.8% recorded in the same weekend last year:

ScreenHunter_18034 Mar. 19 14.02

However, auction volumes nationally (2,844) were well below the same weekend last year (3,540).

ScreenHunter_18033 Mar. 19 14.02

As shown above, Sydney’s auction clearance rate was 83.9%, just above last weekend’s 83.1% but well above last year’s 71.8%. Auction volumes were weaker, however, with 962 homes going under the hammer versus 1,114 on the same weekend last year:

ScreenHunter_18036 Mar. 19 14.02

Melbourne’s auction clearance rate fell to 75.9% versus last weekend’s 84.3%, but was above last year’s clearance rate of 72.1%. However, auction volumes were lower (1,415 versus 1,788):

ScreenHunter_18035 Mar. 19 14.02

In Brisbane, the auction clearance rate fell to 49.4% from 61.1% last weekend, and was similar to last year’s 49.6%. However, auction volumes were down on last year’s (175 versus 284):

ScreenHunter_18037 Mar. 19 14.02

Finally, in Adelaide, the clearance rate fell to 64.7% versus 87.0% last weekend, and was down slightly on the same weekend last year (67.6%). Auction volumes were also down on last year’s (105 versus 145):

ScreenHunter_18038 Mar. 19 14.02

Comments

  1. So except for Sydney clearance rates fell even with lower volumes. That has to be a sign for..

  2. The result for Sydney is even better when you factor in that it was bucketing down with rain. there must’ve been a lot of dedicated – if soggy – house hunters that day.

    • BOOOOMMMMM!!!! It’s the way of things. I still can’t believe suckers on here think otherwise. Seriously…. LLLLLOOOOOOOOOZZZZZZZZZZAAAAAAAAAAASSSSSSSSSSSSSSSSSSSSSSS!!!!

      • [email protected]MEMBER

        hehehe as fresh as ever..

  3. Rates: US 10 year bond yields have almost doubled in the last year, China raised interest rates the day after the Fed and as Trumps inflationary policies take hold, people such as Stan Druckenmiller (Ran Soros’s hedge fund for 30 years) are expecting bond yields to go to 5% in the next couple of years which would force our rates up. Then you have China who banned using the 50k they can take out of the country on foreign property purchases, as well as vowing to reign in property prices and high debt levels of state owned enterprises and the shadow banking system- this will reverberate around the world including in Australia.

    I’m going out on a limb here and treading where many people have been proven wrong to say that I think nationally property prices including house prices peak this year – 2017. I think this current run up could be the final blow off and the peak of our irrational exuberance.

    • I’m going out on a limb here and treading where many people have been proven wrong to say that I think nationally property prices including house prices peak this year – 2017.

      Pretty much everyone thinks that.

      They aren’t introducing all this legislation (stamp duty, FHB, super etc) because people can’t afford a house, its to prevent the crash.

      Everyone is aware that the Chinese tap has been turned off – take one look at Vancouver and Toronto – their eyelids are strapped to the back of their heads in horror and they do not want that coming here.

      You are probably the last to realise this.

      • Yes desperation setting in in Toronto. Only for buyers, not sellers. Sounds a lot like Sydney to me.

        https://www.bloomberg.com/news/features/2017-03-08/desperation-sets-in-for-house-hunters-in-toronto-s-red-hot-market

        ““It’s terrible, it’s just discouraging,” Kayali, 27, said. “You go to the open houses and it’s mostly couples like us. And we’re all in the same boat, looking at one another and I’m thinking ‘O.K. You’re probably outbidding me.’” Just last week they hoped to bid on a semi-detached home similar in size and a five-minute drive away. The next day, it sold for C$1.4 million, 42 percent over asking.

        Speak to prospective buyers in Toronto, where home prices surged the most in almost 30 years in January from a year earlier, and supply is tighter than Manhattan, and you hear the same lament: there’s nothing remotely affordable to buy. The desperation is sparking bidding wars and price gains in cities even a two-hour drive from downtown. The “bubble” word is regularly used to describe the market, and there’s little on the horizon to pop it with immigration booming, the economy strengthening and interest rates unlikely to rise soon.”

      • Yes Dan, try not to Cherry Pick – because a single piece of evidence will expose you for the agenda driven hack you are.

        Capital Economics is stirring the housing pot again, this time suggesting Toronto’s growing housing bubble can be blamed on move-up buyers who are leveraging equity in their existing homes.

        http://business.financialpost.com/personal-finance/mortgages-real-estate/theres-a-new-culprit-for-torontos-brewing-housing-bubble-move-up-buyers

        Because the Chinese are gone – same as Sydney and Melbourne – its the last of the blow offs. The idiots.

        .

      • Pretty much everyone thinks prices peak in 2017? Not from comments and stories I read – a lot of people think in May the gov will introduce super for FHM and the momentum we’ve seen in the last 6 months continues. Prices could peak in 2018 or even 2019 but my guess is this year. Every property investor I speak to thinks prices will never fall…People have been saying prices will peak every year since the GFC so not sure why you think this year is a sure thing – I’m just guessing.

        The last to realise this? I’ve been following China for years but am just reiterating a policy China introduced in January 2017 to ban purchases of foreign property with the 50k they are allowed to take out of the country. This policy is 2 months old and I found this out the day it was released in January 2017- Not sure what you mean here.

        Appears you are just trying to rub people the wrong way.

  4. Around half of all auction results missing in all cities except Sydney and Melbourne.

    Bloody obvious why. Agents are much more inclined to report good results than bad. So in the two hot markets you get about two-thirds reported. In all the other markets, half (or more) of results go missing.

  5. I’m confused.

    Why, for Sydney for example, isn’t 962 the denominator?

    Clearance rates would be 50% if that were the case.