Auction market ended February white hot

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 auction market remains white hot recording the highest final clearance rate since June 2015.

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:

The national clearance rate at the end of February was 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:

Sydney’s auction clearance rate is booming, pointing to a strong price rebound.

Melbourne’s clearance rate is not quite as strong, but also points to a strong price recovery:

The rebound in Melbourne’s auction clearance rate is also pointing to strong price growth.

This more or less matches what is happening with new mortgage growth, which is booming and points to strong price appreciation.

Unconventional Economist
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