Australia’s auction results continue to soften, with the preliminary national auction clearance rate falling to 78.5% from 80.5% the prior weekend:
Auction clearances were significantly lower than the prior week.
As noted by CoreLogic:
Houses have outperformed units throughout the year, recording final clearance rates above 80% for consecutive weeks. This is the first week where the preliminary figure for houses has dipped below 80% with 79.6% of houses recording a sold result compared to the 74.7% units that have sold this week.
Sydney continued to lead the nation’s auction market, recording a preliminary clearance rate of 82.1% off 777 auctions, down from the prior week’s clearance rate of 84.8%.
Melbourne’s preliminary clearance rate slid to 76.1% off 925 auctions, down from 78.1% the prior weekend.
Auction results were solid to strong across the other markets; although auctions are far less common than private sales in these markets.
The national auction clearance rate continues to trend lower after hitting its highest ever level in the March quarter:
Australia’s auction clearance rate has begun to fade.
Domain’s auction results have also topped out (chart via Shane Oliver):
Domain’s auction results have also moved past peak.
Other things equal, this points to slower (albeit still strong) dwelling price growth in the period ahead.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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