Final auction clearance rate strengthens

CoreLogic has released its final auction clearance results for last weekend, which reveals that the final national clearance rate firmed to 70.6% from 69.0% the prior week:

Sydney’s auction clearance softened to 71.3% from 73.3% the prior week, whereas Melbourne’s firmed to 69.7% from 68.0%.

As noted by CoreLogic:

There were 1,728 capital city homes taken to auction last week returning a final auction clearance rate of 70.6%. This was an improvement on the 69% final clearance rate achieved over the week prior when a slightly higher 1,757 homes where auctioned. Comparing figures to last year, clearances rates are at similar levels to that seen last year, however volumes were significantly higher with 2,590 homes taken to auction over the same week one year ago.

Melbourne’s final auction clearance rate improved over the week with 69.7% of auctions successful, higher than the 68% recorded over the week prior. The improved clearance rate was across 604 auctions which was slightly lower than the week prior’s 611 auctions. One year ago, a much higher 1,242 auctions were held across the city with 74.3% clearing.

Both volumes and the clearance rate fell slightly across Sydney last week, with 840 homes taken to auction returning a final auction clearance rate of 71.3%. Lower than the 851 auctions held over the week prior when a higher 73.3% sold. Over the same week last year, 947 Sydney homes were auctioned returning a success rate of 71.9%.

The rebound in auction clearances is bullish for Sydney property prices and points to a slower recovery for Melbourne:

SQM Research’s auction results were weaker and also softened over the past week.

Sydney’s clearance rate retraced to 58.4% from 60.0% last week off similar volumes:

Melbourne’s clearance rate also weakened to 52.0% from 52.8% last week:

In summary, the auction market points to rising dwelling values across Sydney and Melbourne.

Unconventional Economist
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