The nation’s auction market tanked last weekend on the back of a huge fall in Melbourne’s clearance rate.
CoreLogic recorded a final national clearance rate of 58.0%, down from the prior weekend’s 64.3%.
Sydney’s final clearance rate remained strong at 80.2% versus 78.5% the prior weekend, whereas Melbourne’s collapsed further to just 35.9% from 49.1% the prior weekend.
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Smaller capital auction markets were generally solid.
As noted by CoreLogic, Melbourne’s lower clearance rate was driven by a large number of withdrawals:
There were 928 auctions held across Melbourne last week, down -27.7 per cent from the initial predicted count as vendors choose to postpone amid the ongoing lockdown. Unlike Sydney, Melbourne’s lockdown prevents physical property inspections (private inspections can take place in Sydney during the lockdown period, albeit limited to one buyer at a time)…
Of the 928 auctions held last week, CoreLogic collected 919 results. Of these results, 61.6 per cent were withdrawn, up from 48.0 per cent over the previous week. This surge in withdrawals continues to weigh heavily on the final clearance rate…
The national auction clearance rate has obviously still retraced sharply from March’s peak, but remains at a solid level from a historical perspective:
This weekend there are 1,567 auctions scheduled to take place across the capital cities, a big decrease on last week’s 2,367 scheduled volumes:
According to CoreLogic, Melbourne has driven the decline:
There are 551 auctions scheduled in Melbourne this week, down -40.6 per cent from last week when 928 homes were taken to auction…
Sydney is set to host 618 auctions this week, up from 592 over the previous week and 608 this time last year…
Melbourne’s auction market has clearly gone into lockdown hibernation.
While a crashing clearance rate is historically a bearish signal for property prices, the situation is different this time around since it has been caused by withdrawals rather than weak buyer demand.