Auction market faces another big test

CoreLogic has released the final auction clearance rate for last weekend, which rebounded to 59.3% versus 56.2% last week off solid volumes:

According to CoreLogic:

Last week, the combined capital city final auction clearance rate increased to 59.3%, after the week prior saw the final clearance rate fall to 56.2%. Last week’s improved clearance rate was across a higher volume of auctions (1,181), which was the busiest week we’ve seen since Mid-April. While clearance rates and volumes have seen some improvement over the last few weeks, volumes are still tracking lower year-on-year with 1,505 homes taken to auction over the same week last year when 61.8% cleared.

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

The below SQM charts show that auction clearances remain way down on pre-Covid highs:

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

This week offers another test for the auction market, with 1,226 capital city auctions scheduled:

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