Auction market holds up amid Melbourne lockdown

CoreLogic’s preliminary auction report reported only a moderate fall in the preliminary clearance rate (from 65.1% to 62.2%) off softer volumes:

According to CoreLogic:

In Sydney, 538 homes were scheduled for auction this week, down from 580 over the previous week, although higher than one year ago when 316 homes were taken to auction across the city. Of the 294 auction results collected so far, 62.6 per cent were successful. In comparison, the previous week reported a final clearance rate of 61.5 per cent, while a clearance rate of 72.8 per cent was recorded this time last year.

There were 475 auctions scheduled in Melbourne this week, up from 456 over the previous week and 348 over the same week last year. Preliminary results show that of the 256 results collected so far, 63.7 per cent were successful, while 24.6 per cent were reported as withdrawn (compared with only 12.2% of Sydney auctions) which is not surprising given the announcement earlier in the week that Melbourne would enter a 6 week lockdown at midnight on 8 July. The previous week saw a final clearance rate of 60.6 per cent, while this time last year, 70.6 per cent of Melbourne auctions reported a successful result.

Domain’s preliminary auction results were much softer, but based on a smaller sample size:

With so many results unreported, the true auction clearance figure is likely to be much lower – possibly in the 40s.

Unconventional Economist
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