Auction clearances soften off massive volumes

CoreLogic’s preliminary report on the weekend’s auctions reported a softening clearance rate on the second biggest auction volumes of the year.

The national preliminary clearance rate fell to 78.6% from 80.4% the prior weekend. This was off a whopping 3,033 auctions, up from the prior weekend’s 2,876.

Houses continue to outperform units, with 80.9% of houses recording a sold result so far this week, compared to 71.1% of units.

Sydney continued its strong run recording a preliminary clearance rate of 82.6% off 1,157 auctions, down from the prior weekend’s 83.5% preliminary clearance rate off 1,121 auctions.

Melbourne’s preliminary clearance rate also softened to 76.5% off 1,420 auctions, down from the prior weekend’s 77.1% clearance rate off 1277 auctions.

Auction results across the smaller capitals were generally solid to strong, with Perth the exception. However, auction volumes were thin across these markets reflecting that private sales dominate.

Preliminary auction clearances

Preliminary auction clearances softened on rising volumes.

As shown in the next chart, the national auction clearance rate has softened; albeit remains at very high levels historically:

Preliminary auction clearance rate

The preliminary auction clearance rate has moved past its March peak.

Domain’s auction results were similar, recording preliminary clearance rates of 81% (Sydney) and 77% (Melbourne) off higher volumes (chart via Shane Oliver):

Domain auction results

Softer auction clearances off strongly rising volumes.

The auction market continues to paint a picture of voracious demand meeting an uplift in supply. Both listings and sales are strong, with the majority of stock being absorbed; albeit at a slightly lower rate than in March.

This points to ongoing strong property price appreciation, but at a slower pace than was experienced over the first quarter of the year.

Unconventional Economist
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