Auction market plumbs new 2022 low

CoreLogic has reported the lowest preliminary auction clearance rate in 2022; albeit based on volumes that we 41% lower due to the federal election.

The national preliminary clearance rate slid to 62.9%, down from from last week’s preliminary result of 64.6%, which was revised to 60.1% at final figures. In the same weekend last year, 75.6% of auctions cleared.

Australian final auction clearance rate

Melbourne’s preliminary clearance rate (61.9%) overtook the week prior as Melbourne’s lowest preliminary clearance rate of the year. Last week’s preliminary clearance rate of 64.0% was revised down to 60.5% at final numbers, while 74.9% of auctions held this time last year were successful.

Sydney’s preliminary clearance rate rose marginally to 61.7%, up from 61.1% the weekend before, which was later revised down to 53.8%. Sydney’s preliminary clearance rate rose, with 61.7% of auction reporting a successful result. This week’s result is up 60 basis points from the week prior when a preliminary clearance rate of 61.1%, later revised to 53.8%, was recorded.

Preliminary auction clearance rates

The weakening auction results across Sydney and Melbourne are a bearish indicator for both markets, given the historically strong correlation between auction clearances and dwelling value growth.

Unconventional Economist

Comments

  1. Goldstandard1MEMBER

    Yep, 1 year of falls at least until kitchen sink deployed, then who knows. I except the rises of last year to be deleted in the next 12 months then we’ll see if there is a floor is a few other things go tits-up. ie. Change of gov (confidence), China/Uktraine, flaming inflation with rising interest rates whilst rates should be being cut.

    • Goldstandard1MEMBER

      True comment here:

      “Not sure if people understand just how bad credit demand falling will be in Australia…

      How many billions enter the economy each year from credit growth? How many jobs are dependant on that ‘new money’?

      This could get really nasty in a self feeding cycle very quickly.”

  2. Wake me up when there is NO auction market. The very existance of such a thing is evidence of the bubble.