Sydney’s final auction clearance rate crashes to decade low

By Leith van Onselen

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.

[email protected]

Comments

  1. 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).

  2. reusachtigeMEMBER

    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.

    • 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.

    • harry petropoulosMEMBER

      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

    • 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.

  3. 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%

Leave a reply

You must be logged in to post a comment. Log in now