Last weekend, CoreLogic released its preliminary auction clearance rates, which revealed the following results:
Today, CoreLogic has released its final auction results, which reported a large 4.7% decline in the national auction clearance rate to 42.7%, with Sydney’s auction clearance rate diving 5.1% to just 42.6% and Melbourne’s falling 4.8% to 45.7%:
The below time series chart shows the collapse nationally:
According to CoreLogic:
The weighted average clearance rate saw further softening last week, with only 42.7 per cent of homes successful at auction… Both volumes and clearance rates continue to track lower each week when compared to the same period last year (2,046 auctions, 61.5 per cent).
In Melbourne, final results saw the clearance rate fall last week, with 45.7 per cent of the 266 auctions successful, down from the 48.6 per cent across a significantly higher 1,709 auctions over the week prior.
Across Sydney, the final auction clearance rate came in at 42.6 per cent… Sydney’s final clearance rate last week was not only the lowest seen this year, but the lowest the city has seen since December 2008.
You will also note from the second table above that 143 out of Sydney’s 813 auctions (i.e. 18%) were unreported, whereas 56 out of Melbourne’s 266 (i.e. 21%) were unreported. Presumably many of these were failed auctions, thus suggesting that the true auction clearance rate is even lower.
Australia’s housing market continues to weaken.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
- Weekend Reading: 4-5 December 2021 - December 4, 2021
- Auctions deluge continues to flood property market - December 3, 2021
- Sydney’s housing market is truly bananas - December 3, 2021
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Previously I have published data showing that
Where house prices will outperform in 2022
Below is an article that I wrote this week for
suggesting that the true auction clearance rate is even lower.
Yeah – as in well below 30%
35.30% is the lowest it could be for Sydney.
36.1% for Melbourne
Not necessarily – some of those reported sold tend to be duplicates ( ie counted twice with a spelling error in the street name / number) or already reported in previous weeks.
Sure but I’m only going off the information and number presented.
I certainly agree that the data itself is increasingly dubious and becoming more irrelevant for a few reasons:
– Many more properties are simply not going to Auction and have chosen to go for sale instead
– Many more properties are getting passed in and are in their 2nd or 3rd auction or are now for sale.
– Many auctions dates are getting pushed out 1-2 months after their initial date
– There is no real oversight or regulation of the collection and reporting of the number to start with
I agree with all of that, for sure.
In some places they will even throw in FREE Car. Dont buy yet, as its only a Mazda 2, when they get to a Tesla S it might just pique my curiosity. https://www.news.com.au/finance/real-estate/brisbane-qld/buy-a-house-get-a-free-car-this-is-not-a-joke/news-story/cf1d67b5a5e8783e4deaeec1a9a9c41b
Finally we might start to see house prices heading back to some long term average at some point so things can get back to normal and the whole country can wake up, realise it was just a dream (or nightmare depending who you are) and then just get back to some productive work again.
The whole housing obsession is way out of control, it’s just a place to live so you can go find a job and do something productive (hopefully but seems hard to find these days in Australia).
It is good that most people are holding back selling their place as they know the new boom is about to ramp up. It would be stupid for someone to accept a devalued price that does not accurately reflect the true and much higher price they deserve and will get with a little patience.
Ha, trust Reusa not to make a thinly veiled allusion to edging, the hockey-stick shape and its large splurge aftermath – it’s inconceivable!
Hi 3d!
Reusa is not 3d
Come on reusachtige, capitulate already. There are lots of bears on MB and a few sceptics and you – the last remaining property bull. It’s all over once you surrender.
im glad that you believe in your own stories……………house prices will keep going south for at least the next 3 years!!
A veteran real estate agent mentioned that peak to trough might be 30%……….in other words back to 2014 levels!!!
Stay positive and embrace your own literature as the facts are somewhat different
Ahahahahhaahab 2014 levels.
I remember lots of moaning about bubble prices back then, I’m quite sure. Do I take this as housing bear capitulation and acceptance of a permanently high plateau?
@Peachy Whatever is Reusa holding at your temple – is not going to kill you – so you can actually type what you want – not what Reusa wants 😀
It’s all good peachy, come 2023 they will be talking about the coming crash to 2017 level sustainable prices. And still not being part of Reusa’s relations parties
Nods to BJW.
By the way, what does the W stand for?
ruesa knows the way the market goes! There is no question that we’re simply experiencing a sideways reset of prices which will give the truly smart money an opportunity to accumulate, consolidate and ameliorate their property holdings and establish who will be in possession of a relations party golden ticket for the next decade.
I agree, let’s hope they have the required patience to wait for the next boom though, like ten years or so. Otherwise, best to cut their loss while they still have some equity left in the property
Still funny, reusa, but starting to get a little boring (just a little). How long has it been now, since your alter ego joined the dark side? 5 years?
Time for a new metamorphosis, me think.
REIWA spruik incoming in 3…2….1
That is a pretty head and shoulders crash chart. It’s fear and panic after next 5 big weeks of auctions.
Hey – dont’cha know that the next downturn in auction numbers will be because of holidays season spending? Come on! Get with the program!
Good. Let it continue. Only a fool wants high house prices.
The higher the house prices the lower the spending power in the non house sectors of the economy!
Check out the volume drop in Sydney too. 1230 to 800 in 12 months. Hectic.
We’re currently experiencing “loss of containment”…we’ve yet to hit the ignition source.
Just a loss of containment…. indeed, hahaha!
LVO – what were the % of unreported auctions during the boom time?
best question.
Given the assumption unreported auctions are not cleared auctions the results look like……
Melbourne 36%
Sydney 35%
Brisbane 23%
Adelaide 44%
Perth 29%
Canberra 40%
Nat Weighted 35%