Auction market signals weaker property price growth

CoreLogic released its final auction report for last weekend, with the final clearance rate rising to 73.6% from 70.6% the prior weekend, which was negatively impacted by Melbourne’s hard lockdown.

Final auction clearance rates

Melbourne rebounds after reopening.

As usual, Sydney drove the market recording a final clearance rate of 74.1% (down slightly from 75.6%), whereas Melbourne’s final clearance rate rebounded to 68.8% from 64.0%.

Elsewhere, final auction clearances were mixed; albeit off thin volumes given auctions aren’t common in these markets.

Auction clearance rates have fallen sharply from the March’s peak:

Final auction clearance rate

The national final auction clearance rate has fallen from its March peak.

Given historical correlations, the fall in clearances points to slower price growth:

Auction clearances vs price growth

Auction clearances point to slower price growth.

There are 2,610 capital city homes scheduled to go under the hammer this week, up on the 1,413 auctions last week and higher than the 1,251 auctions held one year ago.

Upcoming auctions

Big week for auctions.

Sydney, in particular, is facing a big weekend of auctions as vendors cash in on the unprecedented price boom.

Unconventional Economist

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