CoreLogic has released its Quarterly Auction Market Review, which reveals that Australian auction volumes were the busiest since 2017 over the June quarter of 2021; although this drove the auction clearance rate down from the March quarter’s record high:
There were 31,605 homes taken to auction across the combined capital cities over the three months to June 2021, making it the busiest quarter for auctions since the December 2017 quarter, when 32,408 capital city auctions were held. In comparison, the March 2021 quarter saw 19,004 homes taken to auction…
The combined capital city clearance rate came in at 75.7 per cent, down from the previous quarter when 80.0 per cent of reported auctions were successful. If we take a look at our weekly auction figures, the week ending 30th May 2021 saw the auction clearance rate across the combined capitals fall below 75 per cent for the first time this year, holding below the 75 per cent mark over four weeks, before increasing to 75.4 per cent for the last week of the quarter.
As regular readers know, the auction clearance rate has historically been a strong leading indicator of price growth across Sydney and Melbourne.
Sydney’s clearance rate is pointing to ongoing strong price appreciation; albeit at a slower pace:
It is a similar story for Melbourne, albeit less bullish for prices:
Thus, prices should slow over the second half and into 2022.