Auction clearance rates rocket to boom time levels

Auction clearance rates continue to strengthen, with the preliminary rate nationally surging to nearly 80%, driven by the two biggest markets:

The preliminary national auction clearance rate rose to 79.6% versus 76.6% last weekend. Clearances were also way above the 54.6% recorded in the same weekend last year:

Sydney’s preliminary clearance rate rose to 84.7% – above last weekend’s 81.7% preliminary rate and way above the 53.2% recorded in the same weekend last year.

Melbourne’s┬ápreliminary clearance rose to 79.7% – above last weekend’s 78.3% preliminary rate and way above the 56.5% recorded in the same weekend last year.

However, auction volumes (1,412) were way below last year’s 1,915, suggesting the auction market is not as strong as the headline clearance rates suggest.

Domain’s auction results were similarly strong, but based on a smaller sample, with volumes also well below last year’s:

Regardless, the strong bounce in clearance rates is pointing to rising prices:

Although the strength of the rebound is likely overstated given the historically sluggish volumes.

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