Some more good work from DFA’s Martin North who, alongside property insider Edwin Almeida, has demolished the view that the auction market is rebounding.
As I keep pointing out, auction clearances typically rebound in February/March, reflecting a seasonal bounce:
Moreover, auction volumes have crashed.
Even CoreLogic warned last week that the current rebound is pure seasonality and will likely fall from April:
It will be interesting to see how clearance rates hold up now that auction volumes have started to pick up. The seasonal pattern over previous years has seen a similar bounce back in the auction clearance rate in February through to mid-to-late March before trending lower into autumn and winter. Considering advertised stock levels remain high and most other indicators are soft, it’s possible a similar weakening trend in auction markets will become evident next month.
More lies, lies and housing statistics.
