Auction market neither boom nor bust

CoreLogic’s preliminary auction report reported a slight rise in the preliminary clearance rate (from 64.5% to 65.1%) off solid volumes:

Once final results are received later this week, we are likely to see the weighted average clearance rate fall to around 60%. If so, this would mean that auction clearances are hovering just below the decade average:

According to CoreLogic:

Auction volumes were down week on week across the combined capital cities, with a total of 1,185 homes scheduled for auction. The lower activity which we have historically noted over school holiday periods, returned a preliminary clearance rate of 65.1%. This was higher than last week preliminary figure of 64.5% across a higher 1,485 auctions, which later revised down to 60.6% at final collection. Looking at results from the first week of July last year, a lower 953 homes were taken to auction with a success rate of 64% according to final figures.

Across Australia’s two largest auction markets, the lower activity across both cities saw the clearance rate improve.

There were 439 Melbourne homes taken to auction returning a preliminary clearance rate of 64.3%, which was higher than last week’s preliminary figure of 62.7% across 645 auctions, with a final result of 61%.

In Sydney, 563 homes were auctioned this week returning a preliminary clearance rate of 68.1%, higher than last week’s 66.9% preliminary result, when a higher number of auctions were held (644). The final clearance rate last week came in at 62.9%.

Domain’s preliminary auction results were a bit softer; albeit based on a smaller sample size:

These are reasonable results given the big pick-up in volumes.

Leith van Onselen

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