CoreLogic’s preliminary auction report suggests Sydney’s housing bust is deepening, with a preliminary clearance rate of just 52.5% recorded across the city over the weekend – the worst auction result since April 2020:
Sydney continues to lead auction market lower.
Sydney’s poor clearance rate, combined with its high volumes, helped drive the national clearance rate down to just 55.0% – also the lowest result since April 2020.
Auction clearance rates have traditionally been a reliable leading indicator for dwelling value growth in Sydney. Thus, as illustrated in the next chart, the collapse in clearance rates is pointing to accelerating price falls for Sydney:
Sydney dwelling value losses to accelerate.
The quarterly rate of price decline has hit 2.9% in Sydney, which will surely accelerate from here.
Sydney’s weak auction clearance rate suggests home buyer demand has collapsed. This is also confirmed by May quarter’s sales volumes, which were down by one-third across Sydney versus a year ago, and were also running 6.5% below the five year average, according to CoreLogic:
Sydney’s home sales have collapsed.
The way it is going, Sydney will record double-digit price falls in 2022, with more to come next year if the Reserve Bank continues to hike rates aggressively.
