Auction market ends 2021 with a bang

Australia’s auction clearances have fallen heavily after weeks of record listings:

Last weekend’s final auction clearance rate was 64.0%, down from 66.3% the prior weekend off a record 4,981 auctions (up from 4152 the prior weekend):

As noted by CoreLogic:

Last week saw the highest number of homes taken to auction on record, with all the capitals (excluding Perth and Tasmania) recording the busiest auction week since CoreLogic records commenced in 2008. Across the combined capitals last week, 4,981 auctions occurred, overtaking the previous record of 4,251, set just two weeks prior. High auction volumes have seen clearance rates trend lower over the past couple of months and last week was no exception with the combined capitals recording its lowest clearance rate since late August (64.0%)…

Melbourne hosted 2,318 auctions last week, overtaking the week ending 25th March 2018 (2,071) as the busiest on record and recording auction volumes in excess of 2,000 for only the second time…Continuing the downward trend seen since mid-November, Melbourne’s clearance rate slipped further, with 63.3% of auctions held last week recording a successful  result…

Across Sydney, 1,791 homes were taken to auction last week, up 22.2% from the week prior (1,466), overtaking the week ending 30th November 2014 as the busiest week on record (1,631). Similar to Melbourne, Sydney’s clearance rate slipped further this week, recording its lowest clearance rate of the year-to-date at 60.8%…

Across the smaller auction markets, Adelaide (309), Brisbane (306) and Canberra (224) all had their busiest auction week since records commenced in 2008.

Australia’s final clearance rate continues to fall:

This weekend 4,880 capital city homes scheduled to go under the hammer. This represents the second busiest week since CoreLogic records commenced in 2008:

Going out with a bang, this week’s capital city auction volumes are expected to overtake 3 weeks prior as the second busiest auction week since CoreLogic records commenced in 2008 and will mark the 4th consecutive week where auction volumes have exceeded 4,000. There are 4,880 homes set to go to auction this week, down slightly compared to last week’s  record-breaking 4,981 auctions, but more than double the number of auctions held this time last year (2,331).

Melbourne is expected to host 2,179 auctions this week, overtaking the week ending 25th March 2018 (2,071) as the second busiest on record…

Across Sydney, 1,706 homes are scheduled to go under the hammer this week, down from the record high 1,791 auctions that took place last week. Similar to Melbourne, this week is expected to be Sydney’s second busiest on record, beaten out only by the all-time high set last week…

Predicted auction numbers are up across the smaller capital cities this week, with Adelaide, Brisbane and Canberra all anticipated to break the record highs set last week.

The sheer weight of volumes should continue to temper price growth, especially across Melbourne and Sydney.

Unconventional Economist
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