CoreLogic’s Cameron Kusher has released an interesting report looking at how the current auction market compares against recent years, which finds that Sydney’s is tracking at its weakest level since 2012:
Auction clearance rate in Sydney have been at their lowest levels since 2012 over recent weeks and have been on a steady decline throughout 2017. If you exclude the low volumes in January, last week’s auction clearance rate of 54.8% was the cities lowest clearance rate since December 2015. Clearance rates have not been consistently as low at this time of year since 2012. Clearance rates are substantially lower than they were a year ago and are also slightly lower than they were two years ago when APRAs first round of macroprudential policies were significantly impacting Sydney housing demand. If the previous round of macroprudential policies is a guide we can expect a further weakening of clearance rates over the coming weeks.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
