CoreLogic has released its final auction results for last weekend, with the lowest capital city clearance rate of 2022 recorded and Sydney and Melbourne clearance rates bombing into the 50s:
Nationally, a final clearance rate of 61.8% was recorded. Melbourne’s clearance rate (59.8%) fell to its lowest level since mid-September 2021, whereas Sydney (55.3%) recorded its lowest clearance rate since mid-January:
With the RBA announcing interest rate rises last week, the combined capital city clearance rate fell to its lowest rate of the year to date, with 61.8% of auctions recording a successful result…
Melbourne’s clearance rate slipped below 60% for the first time since mid-September (58.5%), when Melbourne was in COVID lockdown, with 59.8% of auctions held last week reporting a successful result…
Sydney’s clearance rate fell to its lowest point since mid-January (54.9%) with 55.3% of auctions held last week reporting a successful result. At the same time, Sydney’s withdrawal rate (21.8%) rose to its highest rate since mid-December 2021 (22.3%) suggesting less confidence amongst sellers.
Historically, auction clearance rates have been a useful leading indicator for price growth. Thus, the tanking clearance rate across Sydney and Melbourne points to further price falls:
This weekend, 2,931 homes are set to go under the hammer, up 42.4% compared to the previous week and the highest volumes since the pre-Easter spike.
Both Melbourne (1,288) and Sydney (1,001) have a huge volume of auctions scheduled, which should put further downward pressure on prices.
