Auction results flash red for Australian house prices

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:

National auction clearance rate

Worst auction clearance rate since the start of the pandemic.

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:

Sydney auction results versus house prices growth

Sydney house prices set to fall sharply.

Less severe house price falls are also on the cards for Melbourne:

Melbourne auction clearances versus prices

Melbourne house prices to also keep falling.

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.

Unconventional Economist
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Comments

    • BackwardArseCountryMEMBER

      I don’t want to be the one to burst your bubble unfortunately the gubberment will never let property fail, fall a little yes outright fail never. If you think prices are going to fall 50% it will never happen to 10-15% max maybe and that is a big maybe.

      • BoomToBustMEMBER

        I disagree, the RBA and government policy has actively encouraged everyone to buy on credit, leverage debt to you can leverage no more. The trap been set, now it’s being sprung.

        Think I’m wrong? Look at the decions the RBA and governments have made for the last 40 years, Australia had one of the wealthiest per Capita population globally. Read up on global policy such as the Lima agreement. All these global policies our government signed us up to have destroyed our standards of living.

  1. And to top it all off, the late Morrison led LNP gifted some $40 Billion dollars of Aussie taxpayers money to the rich through Jobkeeper that they didn’t need which went straight into their profits and bonuses, and now the rest of us wage earning plebs have to pay for it all! We’ll be paying for the excesses of multiple LNP governments and their failed economic policies and flagrant corruption for generations to come. Anyone believing they are god gifted economic geniuses are rusted on fools or beneficiaries of their blatant and hypocritical largess.

  2. Auction results will “flash red” when people stop auctioning houses and go back to straight forward listing property for an asking price.