Final auction clearance rate slides into the 60s

Last weekend, CoreLogic released its preliminary auction clearance rates, which revealed the following results:

Today, CoreLogic has released its final auction results, which reported a 3.7% decline in the final national auction clearance rate to 67.6% – well above the same weekend last year (49.5%) but below last week’s 71.0%:

As you can see, Sydney’s final auction clearance rate was 5.1% lower, whereas Melbourne’s was 3.3% lower. However, both were remained above 70% and tower above last year’s 46.1% (Sydney) and 51.8% (Melbourne).

The chart below shows the strong bounce in auction clearance rates nationally:

The below charts plot the trend increase in final clearances in Sydney and Melbourne against dwelling value growth, which points to strong price rises:

However, this is tempered by the sharp fall in auction volumes, which are running well below boom time levels:

Thus, it remains a ‘thin’ market that is not as strong as it appears.

Leith van Onselen

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