CoreLogic’s preliminary report on the weekend’s auctions revealed that the national preliminary clearance rate strengthened to 80.4% from last week’s 78.5%. Auction volumes were also considerably stronger, with 2,876 homes going under the hammer nationally versus 2,041 the prior weekend.
Sydney continued its strong run recording a preliminary clearance rate of 83.5% off 1,121 auctions, up from the prior weekend’s 82.1% preliminary clearance rate off 777 auctions.
Melbourne’s preliminary clearance rate also firmed to 77.1% off 1,277 auctions, up from the prior weekend’s 76.1% clearance rate off 925 auctions.
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Auction results across the smaller capitals were solid to strong; albeit off far lower volumes given these markets are dominated by private sales.
As shown in the next chart, the national auction clearance rate has softened; albeit remains at very high levels historically:
Domain’s auction results were similar, recording preliminary clearance rates of 81% (Sydney) and 78% (Melbourne) off higher volumes (chart via Shane Oliver):
All up, the auction market is painting 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.
Tomorrow’s new mortgage data from the ABS will provide additional insight into the strength of the market.
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