Auction clearances surge

Auction clearance rates boomed over the weekend, with the preliminary rate nationally rising into the high-70s%, driven by the two biggest markets:

The preliminary national auction clearance rate rose to 77.0% versus 73.6% last weekend. Clearances were also way above the 55.3% recorded in the same weekend last year:

Sydney’s preliminary clearance rate surged to 83.1% – above last weekend’s 78.9% preliminary rate and way above the 50.6% recorded in the same weekend last year.

Melbourne’s preliminary clearance rose marginally to 76.6% from last weekend’s 76.1% preliminary rate, and was also way above the 60.0% recorded in the same weekend last year.

However, auction volumes (1,529) were way below last year’s 1,916, suggesting the auction market is not as strong as the headline clearance rates suggest.

This view is shared by Domain, which claims that the dearth of stock for sale is helping to drive-up clearance rates:

Melbourne’s usually booming spring property market is set for a slow start despite a growing number of buyers competing to find their dream home.

Although the number of homes for sale is rising as the weather warms up and gardens bloom, the choice on offer will not match previous years. Owners still seem reluctant to list their properties despite the recent pick-up in auction clearance rates and prices.

August’s new listings lifted 31 per cent from the traditionally quiet winter month of July but remained 15 per cent lower than in August last year, Domain data shows.

It follows a quieter year. New listings dropped 23 per cent over the months from January to August compared to the same period last year, as owners who did not have to sell rode out the downturn.

Potential buyers are already being left on waiting lists looking for their next property purchase…

Jellis Craig Fitzroy partner Michael Amarant [said]… “The ledger for most agents shows quite a lot of buyers and not a lot of sellers,” Mr Amarant said.

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