Final auction clearance rates bounce off thin volumes

CoreLogic has released the final auction clearance rate for last weekend, which has rebounded to 62.7%; albeit off volumes that are less than a third of last year’s levels:

According to CoreLogic:

The final weighted average clearance rate came in at 62.7% last week, surpassing the previous week’s 60.4% as the highest result since the week ending 15 March. While clearance rates have bounced back to almost pre-restriction levels, volumes remain significantly lower than what we would usually see. There were 612 auctions scheduled last week, higher than the week prior when 417 auctions were held, however, much lower than the 2,055 held over the same week last year.

Of the 521 results collected, 11% reported as being withdrawn, which is much lower than the withdrawal rates we were seeing a month ago which were above the 50% mark and have slowly reduced each week since.

SQM Research’s alternative auction series, released earlier this week, was far weaker, with clearance rates in the 40s recorded in Sydney and Melbourne:

The below chart plots CoreLogic’s trend final clearance rate against dwelling value growth, which still points to falling prices:

However, with auction volumes so low, this obviously reduces their reliability as an indicator:

The number of auctions scheduled for this weekend remains well below normal levels:

The combined capital city auction market is expected to see a slight increase in auction volumes this week, with CoreLogic currently tracking 692 scheduled auctions. Last week, a lower 612 auctions were scheduled across the capital cities.

While scheduled numbers are set to increase, with this week expected to be the busiest since mid-April, volumes remain substantially lower than what we would usually see. Over the same week one year ago, 1,661 capital city homes were taken to auction.

The low volumes are despite the bans on on-site auctions and inspections being lifted across Australia.

Leith van Onselen

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