CoreLogic has released its final auction clearance rates for last week, with the final clearance rate remaining at a near six-year high of 79.3%, just a whisker below the prior week’s 79.6%. Clearances were also well up from the 73.9% final clearance rate recorded in the same time last year when the property market was also running hot.
As usual, clearance rates were driven by Sydney (85.3%) and Melbourne (76.4%), which are the nation’s dominant auction market; although results were near universally strong:
Sydney’s final clearance rate was also the highest since June 2015.
As shown in the next chart, the national clearance rate is running close to the 2015 peak:
Final auction clearance rates in Sydney and Melbourne have traditionally been a leading indicator of price growth.
As shown in the next chart, the booming clearance rate in Sydney is pointing to a strong price rebound:
Melbourne’s clearance rate is not quite as strong, but also points to a strong price recovery:
This more or less matches what is happening with new mortgage growth, which is booming and points to strong price appreciation.