CoreLogic has released its preliminary auction results for the weekend, with the preliminary clearance rate soaring across Sydney to its highest level since mid-October 2021 despite the strongest volumes this year:
Sydney held 688 auctions this weekend, resulting in a preliminary clearance rate of 81.7%.
Melbourne held 961 auctions, with 72.2% selling at auction thus far. Melbourne’s preliminary clearance rate has remained around 70% year-to-date, although was slightly lower than last weekend (73.1%).
Commenting on the results, CoreLogic research director Tim Lawless noted that “demand from buyers has kept pace with the pick-up in activity”.
“For some context, the preliminary clearance rate settled in the mid-60% range at the end of last year, and final clearance rates were in the mid 50%’s”, Lawless said.
“With the preliminary clearance rate holding above 73% for the past three weeks, it’s probably fair to say the stronger auction results are attributable to more than early year seasonality”.
“Some confidence has returned to the auction markets amid falling inflation and a growing expectation that lower interest rates later this year could see housing price growth accelerate”, Lawless said.
The strong rebound in Sydney auction clearances appears to be having an impact on prices, with CoreLogic’s daily dwelling values index recording an uptick in Sydney value growth:
Melbourne’s dwelling values, by contrast, continue to fall, albeit at a slower rate.
When the Reserve Bank of Australia lightly cuts interest rates later this year, it will add significant further stimulus to house prices.
