Auction clearances continue to rise

After last week’s final auction clearance rates for Sydney and Melbourne hit two-year highs, CoreLogic’s preliminary auction clearance rate for the weekend’s auctions rose further above 70%, driven by Sydney and Melbourne:

However, auction volumes have fallen by more than a quarter – 1,115 aucti0ns were held over the weekend versus 1,536 in the same weekend last year:

According to CoreLogic:

There were 1,115 homes taken to auction across the combined capital cities this week, up from the 896 homes auctioned last week. The higher volumes saw the preliminary auction clearance rate rise to 71.2 per cent after last week’s 65.4 per cent final clearance rate. The weighted average clearance rate has improved over each of the last four weeks, coming in above the mid-60 per cent range over the last two weeks and showing a vast improvement year-on-year when around 50-55 per cent of the homes taken to auction were reported as selling. However, volumes remain lower each week compared to last year, over the same week one year ago 1,536 were taken to auction…

The two largest auction markets, Melbourne and Sydney, saw their preliminary clearance rates rise this week; both coming in at the mid-high 70 per cent mark, with both cities seeing an increase in volumes over the week.

When the final results come in on Thursday, the national clearance rate will fall into the mid-to-high-60s, whereas both Sydney’s and Melbourne’s will likely fall into the low-70s.

Nevertheless, the rising clearance rate is pointing to firming prices across both cities:

Unconventional Economist

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith is an economist and has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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