Sydney auction clearance rate plunges into 40s

CoreLogic released its auction report yesterday, which reported a further fall in the preliminary national auction clearance rate to 57.6% from 59.7% last weekend (later revised down to 56.2%).

The preliminary clearance rate was also way below the 69.8% recorded in the same weekend of last year, with a sharp downward trend evident:

Auction volumes nationally were 2,272 – below the 2,578 recorded in the same weekend last year:

Once revised the numbers nationally are certain to fall into the low 50s, levels associated with continued house price falls. However, Sydney’s will very plunge into the 40s once final results come in, given the huge number of auction results (237) that are missing.

Regardless, clearances in Sydney (-19.6%), Melbourne (-11.5%), Perth (-20.9%), and Canberra (-2.7%) were all lower than the same weekend last year, whereas Brisbane’s (+8.1%) and Adelaide’s (+8.9%) were higher.

The table shows the breakdown by houses and units:

Onward and downward.

As an aside, Martin North has done a good job examining auction clearance rates and whether they can be trusted:

Basically, treat auction clearances with a grain of salt. They are a useful trend guide, but by no means perfect:

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