Auctions plunge bad news for Sydney house prices

CoreLogic’s final auction report for last weekend has been released, with clearance rates falling to 62.9% nationally – the fourth consecutive week where the final clearance rate has held below 65.0%:

Final auction results

Sydney’s final clearance rate plunged to 58.2%, pulling the national result down. It was the lowest final clearance rate recorded for Sydney since the week ended 23 January 2022 (54.9%), and was a far cry from the 80.2% clearance rate recorded in the same weekend last year.

As shown in the next chart, final clearance rates nationally have trended lower since the beginning of the year:

Final auction clearance rates

Clearance rates have historically been a good leading indicator for prices across Sydney and Melbourne. Accordingly, the sharp fall in clearance rates across Sydney is pointing to further house price falls:

Sydney auction clearances and prices

This weekend, auction volumes are tipped to decline by 22.6% with 2,088 homes scheduled to go under the hammer across the combined capital cities. 879 homes are scheduled for auction in Melbourne (down 31.9%) whereas 702 auctions are scheduled this week in Sydney (down 23.2%).

Unconventional Economist

Comments

    • Yeah, I thought we’re all trying to help first home aspirants get a secure roof over their heads, you know just a single home. I’m sure that’s the aim of our politicians. We should be glad they have a chance.

  1. Goldstandard1MEMBER

    and Melbourne – not mention that 90% of sales are undisclosed because they are falls. We’ll see those in August when it will be FUGLY – from what I’ve seen it is already soft at auctions and that was before ‘the rate rise that was never going to happen’ happened. Then wait for the 0.4 next month. Ouchee mamma

  2. The Travelling PhantomMEMBER

    Every time the prices start to go down the market dries up like a dry c…..
    And as peachy said it’s a matter of stand off between sellers and buyers and always sellers win

    • I can see all that, and sadly, agree. But now, we have an actual interest rate RISE which many people have never experienced. Will it change the mindset? Let’s see.

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