Auction market softens on higher volumes

CoreLogic’s preliminary report on the weekend’s auctions reported a slightly lower clearance rate on another big weekend of high volumes.

The national preliminary clearance rate fell to 78.2% from 79.0% the prior weekend. This was off 2,845 auctions, down slightly from the prior weekend’s 2892 (which was the third biggest weekend of auctions in 2021).

Sydney continued its strong run recording a preliminary clearance rate of 80.0% off 1,111 auctions, down from the prior weekend’s 81.6% preliminary clearance rate off 1,149 auctions.

Melbourne’s preliminary clearance rate was dead flat at 77.6% (the same as the prior week) off 1,286 auctions, down slightly from the prior weekend’s 1,330 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.

Auction clearance rates

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:

Auction clearance rate

The national clearance rate continues to float down from May’s peak.

Domain’s auction results were softer off a smaller sample size, recording preliminary clearance rates of 77% (Sydney) and 74% (Melbourne):

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 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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