CoreLogic has released its final auction report for last weekend, which shows the national clearance rate collapsing to 53.2% – the worst result since July 2020:
The result nationally was a far cry from the same weekend last year when 72.1% of auctions were successful.
Sydney’s auction clearance rate was especially grim, falling below 50% for the first time since April 2020. It was also more than 20 percentage points lower than the rate recorded a year ago (70.5%).
As regular readers know, auction clearances are a good leading indicator of prices in Sydney and Melbourne.
The collapse in Sydney’s auction clearance rate is pointing to even steeper prices falls:
Less severe house price falls are also on the cards for Melbourne:
Sydney and Melbourne continue to lead Australia’s nascent house price correction. With the Reserve Bank tightening interest rates aggressively, it’s only a matter of time before the weakness spreads to the other markets.