Auction market builds more steam

CoreLogic’s preliminary auction clearance rate strengthened again, with 77.0% of reported auctions cleared versus 76.2% last weekend:

Sydney’s preliminary clearance rate rose was strong with 79.6% of reported auctions cleared versus 80.4% last weekend.

Melbourne’s preliminary auction clearance rate firmed to 75.8% versus 72.6% last weekend.

According to CoreLogic:

There were 1,757 homes take to auction across the combined capital cities this week, up from 1,427 over the previous week and 1,555 this time last year. Of the 1,433 results collected so far, 77.0 per cent were successful which is the highest preliminary clearance rate recorded since the week ending 1st March (77.1 per cent). Last week, a preliminary clearance rate of 76.2 per cent was recorded across the combined capitals, revising down to 66.9 per cent at final figures. This time last year, 68.0 per cent of reported auctions were successful.

Melbourne was host to 604 auctions this week, increasing from 490 over the previous week and 255 this time last year. The week leading up to Melbourne Cup traditionally sees auction volumes dip across the city however this year doesn’t appear to be impacted to the extent that we would usually see which is not overly surprising given restrictions across the city have only started to ease. Of the 530 results collected so far this week, 75.8 per cent have been successful, increasing on last week’s preliminary clearance rate of 72.6 per cent, which revised down to 63.5 per cent by final collection.

In Sydney, 864 homes were taken to auction this week, increasing from 700 over the previous week and 843 this time last year. The higher volumes saw the preliminary clearance rate hold reasonably firm at 79.6 per cent, while the previous week recorded a preliminary clearance rate of 80.4 per cent, revising down to 70.4 per cent at final figures. This time last year, 74.6 per cent of reported auctions were successful.

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

According to AMP chief economist, Shane Oliver via Twitter:

“Reopening, lots of gov incentives, likely even lower mortgage rates ahead from the RBA, “escape from the city” & Spring are dominating the drags from hi unemployment & the hit to immigration (for now)”.

Yep.

Unconventional Economist
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