Auction clearances stay strong despite high volumes

CoreLogic’s preliminary report on the weekend’s auctions reported a slightly higher clearance rate on the third biggest auction volumes of the year.

The national preliminary clearance rate rose to 79.0% from 78.6% the prior weekend. This was off a whopping 2,892 auctions, down slightly from the prior weekend’s 3,033 (which was the second biggest weekend of auctions in 2021).

Sydney continued its strong run recording a preliminary clearance rate of 81.6% off 1,149 auctions, down from the prior weekend’s 82.6% preliminary clearance rate off 1,157 auctions.

Melbourne’s preliminary clearance rate firmed to 77.6% off 1,330 auctions, up from the prior weekend’s 76.5% off 1,420 auctions.

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

Preliminary auction clearance rate

Another weekend of strong auction results.

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

CoreLogic preliminary auction clearance rate

The national auction clearance rate remains strong; albeit lower than its March peak.

Domain’s auction results were similar, recording preliminary clearance rates of 81% (Sydney) and 77% (Melbourne):

Domain preliminary auction clearance rate

Domain’s auction results were similarly strong.

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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