Australia’s auction market continues to plumb new lows, with clearance rates falling to their lowest level nationally since the depths of the COVID lockdowns in April 2020.
Last week’s average final clearance rate for November was only 43%, with final weekly clearance rates stuck in the 40s for 22 of the past 24 weeks.
This weekend’s preliminary auction clearance rate suggests that the market has softened further, with the national rate of 44.0% the lowest preliminary result since April 2020, well below the spring average to date of 50.4% and the winter average of 52.3%.
Source: Cotality
The preliminary result suggests the final national auction clearance rate could plunge into the low 40s, or possibly even the high 30s, once more results are gathered.
Sydney’s preliminary clearance rate fell 4.2 percentage points to 48.1%, slipping below 50% for the first time this spring and coming in below the spring average to date of 53.7%.
Melbourne’s preliminary clearance rate fell sharply to 47.8%, down 11.3 percentage points from 59.1% last week and well below the spring average to date of 54.5%. This was Melbourne’s lowest preliminary clearance rate since September 2021.
Brisbane’s preliminary clearance rate fell to just 25.3%, down 5.9 percentage points from last week and remaining well below the spring average to date of 30.3%. Brisbane’s preliminary clearance rate has remained below 30% in five of the past seven weeks.
Adelaide’s preliminary clearance rate fell to 41.3%, down 2.2 percentage points from last week and below the spring average to date of 44.2%.
Clearly, the national housing downturn remains entrenched, with values falling by 9.0% across the five main capital city markets, with each recording heavy falls:
Given the lack of buyer demand reflected above, home prices have a lot further to fall.
