CoreLogic has poured a bucket of cold water on reports claiming the auction market is rebounding, noting that February’s bounce is typical and that clearances will very likely weaken from late next month:
Last week’s final clearance rate marked the second week in a row where the final clearance rate held above 50 per cent, an improvement given the weekly auction clearance rate sat at or below 42 per cent for 5 consecutive weeks in November/December 2018. 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.
