Sydney auction clearances continue to strengthen

CoreLogic has released its final auction clearance results for last weekend, which reveals that the final national clearance rate firmed to 66.9% from 66.2% the prior week:

Sydney’s auction clearance strengthened to 70.4% from 69.1% the prior week, whereas Melbourne’s rose to 63.5% from 60.2%.

As noted by CoreLogic:

There were 1,427 auctions held across the combined capital cities last week, up from 1,131 over the previous week although significantly lower than the same week last year (2,622). All but one result was collected last week, with final figures showing a clearance rate of 66.9 per cent across the combined capitals, up from 66.2 per cent over the previous week, although lower than this time last year (72.2 per cent).

Last week saw auction activity ramp up across Melbourne with 490 homes taken to auction across the city, up from 187 over the previous week, although substantially lower than the same week last year (1,528). The higher volumes returned a final clearance rate of 63.5 per cent last week, up from 60.2 per cent over the previous week, although lower than the same week one year ago (75.1 per cent).

There were 700 Sydney homes auctioned last week, similar to the previous week when 704 auctions were held, although slightly lower than this time last year (771). Last week saw Sydney’s final clearance rate come in at 70.4 per cent, the highest clearance rate the city has seen since the week ending 8th March (75.2 per cent). Over the previous week, the clearance rate was slightly lower (69.1 per cent), while this time one year ago, Sydney recorded a clearance rate of 74.3 per cent.

SQM Research’s auction results were far weaker.

Sydney’s clearance rate rose to 55.8% from 55.5% last week:

Melbourne’s clearance rate was 47.0%, up from 31.9% last week:

Managing Director Loui Christopher also also believes that the risk of a housing crash has abated:

“I believe the bleaker scenario of a COVID housing price crash has now been averted. It was on the table. But rate cuts, Govt stimulus and banks managing their loan deferrals, have deferred this scenario for now”.

The data certainly supports this view.

Unconventional Economist
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