Auctions deluge continues to flood property market

Australia’s auction market continued to fatigue after a record week of listings:

Last weekend’s final auction clearance rate was 68.5%, down from 70.3% the prior weekend off 4,251 auctions (up from 3,720 the prior weekend):

As noted by CoreLogic:

This week saw Canberra, Adelaide and the combined capital cities all recording their busiest auction weeks since CoreLogic records commenced in 2008. Across the combined capitals 4,251 homes went under the hammer, marking the first time the volume of capital city auctions has exceeded 4,000 and overtaking the week ending 25th March 2018 (3,990) as the busiest auction week on record. The week prior saw 3,720 capital city homes go under the hammer, while this time last year 2,168 auctions were held. Continuing the downward trend observed since early October, the increase in volumes saw the clearance rate fall to 68.5%, down from 70.3% the previous week. This time last year 70.6% of auctions held were successful.

Melbourne hosted the most auctions last week with 1,910 homes going under the hammer across the city. This is up 15.3% from the week prior (1,657) and is more than double the number of auctions recorded this time last year (909). Last week 66.3% of auctions held were successful – Melbourne’s lowest clearance rate since the middle of September (58.5%) when COVID restrictions were in full effect…

Originally scheduled for its busiest week on record, Sydney disappointed last week and instead recorded its second busiest, hosting 1,546 auctions across the city. The rise in volumes saw Sydney record its lowest clearance rate over the year-to-date with 67.2% of auctions recording a successful result.

Australia’s final clearance rate continues to fall:

This weekend 4,222 capital city homes scheduled to go under the hammer. This represents the second busiest week since CoreLogic records commenced in 2008:

Across the combined capitals, 4,222 homes are expected to go to auction, down 0.7% from the 4,251 auctions held last week. This is only the second time predicted auction volumes have exceeded 4,000. This time last year 2,085 auctions were held…

Across Melbourne, 1,887 homes are predicted to go under the hammer this week, set to become Melbourne’s third busiest auction week of the year…

In Sydney, 1,547 homes are scheduled for auction this week, up one from the 1,546 auctions held last week. If all the predicted auction occurs, this week will overtake last week as Sydney’s second busiest on record and will see Sydney’s auction volumes grow for its ninth consecutive week.

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

Unconventional Economist
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