Last weekend, CoreLogic released its preliminary auction clearance rates, which revealed the following results:
Today, CoreLogic released its final auction results, which reported a 1.9% decline in the final national auction clearance rate to 66.4% – well above the same weekend last year (54.0%) but below last week’s 68.6%:
As you can see, Sydney’s final auction clearance rate was 2.8% lower, whereas Melbourne’s was 2.4% lower. However, both were above 70% and were way above last year’s 51.9% (Sydney) and 57.0% (Melbourne).
The chart below shows the strong bounce in auction clearance rates nationally:
Commenting on the results, CoreLogic noted:
The lower clearance rate over the week was across a similar volume of auctions with 1,108 homes taken to market. While slightly fewer homes sold at auction last week, the weighted average has remained above 65 per cent for four consecutive weeks now. Compared to one year ago, clearance rates are currently around 10 percentage points higher, however volumes continue to track lower year-on-year.
Melbourne and Sydney’s final auction clearance rate remained above 70 per cent last week, making it the second consecutive week above this mark for Melbourne and the fifth for Sydney.
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 lack of available credit.