Last weekend, CoreLogic released its preliminary auction clearance rates, which revealed the following results:
Yesterday, CoreLogic released its final auction results, which reported a 3.6% decline in the final national auction clearance rate to 73.0% – well above the same weekend last year (53.3%) and also above last week’s 67.8%:
As you can see, Sydney’s final auction clearance rate was 5.5% lower, whereas Melbourne’s was 2.1% lower. However, both were well above 70% and were way above last year’s 51.9% (Sydney) and 54.0% (Melbourne).
The chart below shows the strong bounce in auction clearance rates nationally:
Commenting on the results, CoreLogic noted:
Last week, the combined capital cities returned a final auction clearance rate above 70 per cent for the first time since May 2017, albeit volumes were significantly lower than what we were seeing over the period in 2017…
There were 588 Melbourne homes taken to auction last week up from the 500 auctions held the previous week, the higher volumes saw the final clearance rate improve with 76.2 per cent of homes selling, surpassing the week prior as the highest since Nov-17.
In Sydney, the final auction clearance rate remained steady week-on-week at 76.2 per cent, although volumes increased across the city with 446 homes taken to market, up from the 367 over the previous week.
The below charts plot the trend change in final clearances in Sydney and Melbourne against dwelling value growth:
As you can see, the bounce in clearance rates is pointing to prices rebounding strongly. However, in practice the rebound is likely to be stunted by the low volumes and ongoing constraints on credit.