Auction market fails to launch as lockdowns eased

CoreLogic has released the final auction clearance rate for last weekend, which has rebounded to 60.4%; albeit off very weak volumes:

According to CoreLogic:

The capital city final auction clearance rate came in at 60.4% last week, surpassing the previous week’s 59.9% as the highest final result we’ve seen since Mid-March. The improved clearance rate was across a lower volume of auctions with 417 held, down on the 480 held over the week prior. Of the 349 results collected, 15% were withdrawn which was much lower than the previous week’s 22% and the 50% seen a few weeks ago, which is a contributing factor in the improvement of clearances rates over the last few weeks. The number of properties selling prior to the scheduled auction date appears to have normalised last week, of the 209 sold results, 28.7% were sold prior to the scheduled auction date which was on par with what we would usually see. The previous week saw 43.8% of sold results recorded as ‘sold prior’ and a few weeks ago sold priors accounted for 50-60% of sold results.

SQM Research’s alternative auction series 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, auction volumes are running at around 40% of last year’s levels, which reduces their reliability as an indicator:

This weekend will see more low auction volumes, with only 472 homes scheduled to go under the hammer across the capital cities. compared to 2,055 in the same weekend last year:

The low volumes are despite the bans on on-site auctions and inspections being lifted in NSW, WA, SA and Qld.

Leith van Onselen
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