Melbourne’s auction market is dead

CoreLogic’s preliminary auction clearance rate retraced slightly, with 67.5% of reported auctions cleared versus 67.7% last weekend:

Sydney’s preliminary clearance rate was solid with 69.5% of reported auctions sold, albeit down from 74.0% last weekend.

However, Melbourne’s preliminary clearance rate bombed to just 33.3% from 49.6% last weekend off only 28 auctions.

According to CoreLogic:

There were 882 homes taken to auction over the week, down from 1,128 over the previous week and 1,533 this time last year…

Auction activity came to a virtual halt in Melbourne this week with just 28 homes taken to auction. The lower activity is not overly surprising given the city has been in stage 4 lockdown for the past 5 weeks, meaning both onsite auctions and private inspections are currently banned in Melbourne. Of the 24 results collected so far, just 33.3 per cent were successful, with all but one sold prior to the auction event. Two thirds of Melbourne auctions were withdrawn this week, skewing the clearance rate lower. Over the previous week, 162 auctions were held across the city, while this time last year, 765 Melbourne homes were taken to auction.

Sydney was host to 625 auctions this week, down from 706 last week and 528 this time last year. Of the 491 auction results collected so far, 69.5 per cent were successful, down from last week’s preliminary result of 74.0 per cent which revised down to 64.2 per cent at final results. This time last year, Sydney recorded a final auction clearance rate of 75.7 per cent.

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

Moreover, according to AMP, the auction market has lost some steam:

As noted by Shane Oliver on Twitter:

“Government & bank measures supporting prices for now, but expect weakness into next year as unemployment, lower rents & immigration impact”.

Spot on.

Leith van Onselen
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