Auction market finally tops out

CoreLogic has released its final auction results for last weekend, with the national clearance rate coming in at 78.6%.

While this was up 1.8% on the prior week’s 76.8%, it was significantly below March’s average final clearance rate of 81.0%:

Final auction clearance rate

After a record breaking run in the March quarter, auction clearances are beginning to slow.

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Sydney continues to lead the nation’s auction market, recording a final clearance rate of 81.5% – the 11th consecutive weekly clearance rate above 80%.

Melbourne’s final clearance rate was 77.3% – similar to the March average of 78%.

Results across the other capitals were mixed, although auctions are not very prevalent in these markets and are not a good leading indicator of property market strength.

Auction results

Sydney’s auction market remains turbo-charged, whereas Melbourne’s is softer.

The final auction clearance rate continues to point to rapid Sydney dwelling value growth, based on historical correlations:

Sydney auction results vs prices

Sydney’s auction market continues to signal rapid price appreciation.

By comparison, Melbourne’s auction market is pointing to a moderation of price appreciation (albeit still strong):

Melbourne auction results vs prices

Melbourne’s auction results are pointing to slower price growth from recent rapid levels.

It will be interest to see if April’s new mortgage data, due to be released at the beginning of May, shows similar results that points to a topping of price growth across Melbourne and further rapid growth in Sydney.

Unconventional Economist
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