Auction clearance rates continue to strengthen, with the preliminary rate nationally rising above 70% and Sydney’s rising above 80%:
As shown below, the preliminary national auction clearance rate rose to 70.4% versus 68.3% last weekend. Clearances were also way above the 54.9% recorded in the same weekend last year:
Sydney’s preliminary clearance rate rose to 81.2% – above last weekend’s 74.8% preliminary rate and way above the 53.8% recorded in the same weekend last year.
However, Melbourne’s preliminary clearance rate of 73.2% was roughly the same as last weekend (73.3%), but also well above the same weekend last year (58.0%).
Auction volumes (1,107) were also well below last year’s 1,402, suggesting the auction market is not as strong as the clearance rates suggest.
Therefore, while the strong bounce in clearance rates is pointing to prices rebounding strongly, it is likely to be muted given the low volumes, the ongoing lack of available credit, and the deteriorating economy: