CoreLogic has released its final auction results for last weekend, which recorded a national clearance rate of only 55.2%:
Auction results weak everywhere but in Adelaide.
As shown above, auction clearances have tanked everywhere except Adelaide.
Sydney continues to lead the nation lower with its clearance rate of 52.7% being the lowest since April 2020 during the first national COVID lockdown.
Melbourne’s final clearance rate of 55.7% was above the previous week’s 2022 low (52.4%), but was still down massively from the 69.0% of auctions that were successful in the same weekend of last year.
Given both cities’ high volumes, the auction market has historically been a good leading indicator of price growth for Sydney and Melbourne.
Sydney’s auction clearances are pointing to an acceleration of price falls:
Sydney price falls to accelerate.
Melbourne is also looking at hefty price falls based on auction clearances:
Melbourne also facing hefty price falls.
Given both markets are the nation’s most expensive major capitals with the most indebted households, they should experience the biggest price corrections as the Reserve Bank ratchets up mortgage rates.
Already the RBA’s rate hikes are having an impact. And we are only at the beginning.
