Auction market builds steam

CoreLogic’s preliminary auction clearance rate strengthened, with 76.2% of reported auctions cleared versus 72.4% last weekend:

Sydney’s preliminary clearance rate rose was strong with 80.4% of reported auctions cleared versus 75.9% last weekend.

Melbourne’s preliminary auction clearance rate also firmed to 72.6% versus 65.0% last weekend.

According to CoreLogic:

There were 1,456 capital city homes taken to auction this week, the largest volume of auctions seen since early April. According to preliminary figures, of the 1,100 results collected so far, 842 were successful auctions. This equates to a 76.2% clearance rate, which is higher than last week’s preliminary clearance of 72.4% across a lower 1,131 auctions, later revising down to 66.2% by final collection on Wednesday. One year ago, a much higher 2,622 capital city auctions took place with a 72.2% success rate.

The increase in overall volumes this week can be attributed to the ramp up in activity across Melbourne, where 505 homes were taken to auction. This makes it the busiest week the city has seen since July and also the largest number of auctions held across Melbourne on a grand final weekend historically. The increase in activity across the city returned a preliminary auction clearance rate of 72.6%, higher than the 65% preliminary figure last week, revising down to 60.2% by final collection.

712 Sydney homes were auctioned this week, of the 551 results collected so far, 80.4% of these were sold results. Both volumes and clearance rates increased over the week after last week saw a slightly lower 704 homes taken to auction and a final auction clearance rate of 69.1%. Last year, 771 Sydney auctions were held, returning a final auction clearance rate of 74.3%.

Domain’s auction results were softer off a smaller sample size:

According to AMP chief economist, Shane Oliver via Twitter:

“Mel picking up. Spring bounce in Syd. Reopening, gov incentives, likely even lower rates & escape from the city are dominating the drags from high unemployment and the hit to immigration at present”.

Solid results, albeit off soft volumes.

Unconventional Economist
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