CoreLogic has released its preliminary auction results for the weekend, which recorded the lowest national clearance rate for 2022.
Of the 1,611 results collected so far (out of 2,039 auctions), 64.7% were successful. This overtook last weekend’s 67.2% preliminary clearance rate as the year’s worst result, which was downgraded to 62.9% at final figures.
The nation’s auction clearance rate has bombed.
In the same weekend of 2021, 77.2% of auctions were successful. Thus, the auction market has clearly lost significant steam.
Sydney continues to drive the nation’s clearance rate lower with only 58.7% of auctions reported successful, down from the previous week’s preliminary clearance rate of 62.3%, which revised down to 58.2% at final figures:
Sydney drives auction decline.
It was Sydney’s lowest preliminary clearance rate since April 2020, excluding the week ended 23rd January 2022 when fewer than 100 homes were taken to auction. Once final results are counted, Sydney’s clearance rate could plunge into the low 50s.
Auction clearances have traditionally been a strong leading indicator for price growth in Sydney, as illustrated in the next chart:
Sydney’s auction clearances signal house price falls.
Therefore, the sharp fall in Sydney’s auction clearance rate suggests that house prices will continue to fall.
