Auction volumes surged 85% in Q4, dragging down prices

CoreLogic has released its Quarterly Auction Market Review for the December quarter of 2021, which reveals that auction volumes surged 85% over the quarter to record highs:

There were 42,918 homes taken to auction across the combined capital cities over the December 2021 quarter, up 85.1 per cent from the previous quarter (23,184) and more than double (+109.5 per cent) from the December 2020 quarter (20,489). The combined capital city clearance rate came in at 71.3 per cent over the December 2021 quarter, down only slightly from the previous quarter when 71.7 per cent of reported auctions were successful, while the December quarter last year saw a clearance rate of 69.4 per cent.

Looking at weekly figures, auction volumes were trending higher throughout the December quarter, rising above 4,000 for the first time since CoreLogic records began in 2008, and holding there for four consecutive weeks. The w/e 12th December recorded the highest weekly auction volumes on record (4,981), followed by the w/e 19th December (4,783), w/e 28th November (4,251) and w/e 5th December (4,153). The higher volumes weighed on the weekly combined capital city clearance rate, with the trend moving lower over the quarter. The first week of the quarter (w/e 3rd October) saw 1,986 homes scheduled for auction, with 83.2 per cent of reported auctions returning a successful result, while the last week of the quarter (w/e 19th December) saw 4,783 auctions scheduled, returning a clearance rate of 61.1 per cent.

The surge in listings and the corresponding fall in clearance rates across Sydney and Melbourne was a key factor behind the slowdown in property price growth across both capitals:

It will be interesting seeing how it plays out over the early months of 2022.

Unconventional Economist

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