Sydney’s auction market gathers steam

CoreLogic’s preliminary auction clearance rate surged, with 72.4% of reported auctions cleared versus 67.3% last weekend:

Sydney’s preliminary clearance rate strengthened again with 72.4% of reported auctions sold, up from 70.4% last weekend.

However, Melbourne had too few auctions to even report a clearance rate.

According to CoreLogic:

This week, the combined capital city preliminary auction clearance rate came in at 72.4 per cent, the highest preliminary clearance rate recorded since early March so it will be interesting to see how it holds up as final results are collected… There were 918 homes taken to auction over the week, up from 816 over the previous week, although significantly lower than this time last year (1,983).

Auction activity remains extremely low across Melbourne this week with just 11 homes taken to auction. Of the results collected so far, all 7 were successful, with 5 reported as selling prior to auction and 2 selling on the day. Over the previous week, 13 auctions were held across the city, while this time last year, 1,020 Melbourne homes were taken to auction. Auction numbers are expected to rise off their
record lows next week, with CoreLogic currently tracking around 60 auctions scheduled to be held.

Sydney was host to 679 auctions this week, up from last week when 600 auctions were held, and higher than this time last year when 646 homes were taken to auction. Of the 562 auction results collected so far, 72.4 per cent were successful, up from last week’s preliminary result of 70.4 per cent which revised down to 65.9 per cent at final results. This time last year, Sydney recorded a final auction clearance rate of 72.7 per cent.

Domain’s auction results were virtually identical, albeit based on a smaller sample size:

According to AMP chief economist, Shane Oliver via Twitter:

“Melb is stalled, while Syd looks to be perking up for Spring. Expect an uptick in Melb w reopening from late Oct. Tapering of gov & bank support, high unemp, lower rents & immigration still to impact”.

As I keep arguing, 2021 will be the litmus test once emergency income supports are unwound.

Unconventional Economist
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