Auction markets have responded positively to the May rate cut, with the volume of capital city auctions held jumping 40.8% to 2,512 last week, from 1,784 the week prior, and the preliminary auction clearance rate rising to 71.3%, the second highest early result so far this year.
Auction results saw a similar pattern after the February rate cut, with the preliminary clearance rate bouncing to 72.1% a week after the announcement (the highest so far this year), before gradually drifting lower as some exuberance left the market. The preliminary clearance rate found a floor at 64.2% in the last week of April.
Melbourne held the most auctions last week, with 1,263 homes going under the hammer. This was the highest auction volume since the week prior to the Easter long weekend when 1,382 homes were auctioned. 73.7% of Melbourne auctions have recorded a successful result so far, roughly in line with the week prior (73.8% which revised down to 68.0% once finalised) and the fourth week in a row where the preliminary auction clearance rate has held above the 70% mark.
814 residential properties went to auction in Sydney last week, the highest volume since the week prior to Easter (1,282). The preliminary clearance rate rose to 72.2%, the first 70%+ preliminary clearance rate in ten weeks. Over the previous week, a preliminary clearance rate of 65.3% was recorded.
Brisbane hosted the most auctions across the smaller capitals, with 201 homes taken to market last week, the second highest weekly volume of auctions so far this year. However, the preliminary clearance rate remained relatively subdued at 58.5%, down slightly from 59.6% the week prior and a recent high of 69.7% two weeks ago.
Historical clearance rates utilise the final auction clearance rate, while the current week is based on the preliminary clearance rate
120 homes were taken to auction in Adelaide last week, down from 130 the week prior. The preliminary clearance rate leapt to 74.6%, up from 64.1% over the previous week.
The above results are preliminary, with ‘final’ auction clearance rates published each Thursday. Cotality, on average, collects 99% of auction results each week. Clearance rates are calculated across properties that have been taken to auction over the past week.
96 auctions were held in the ACT last week, the third highest volume so far this year. The preliminary clearance rate reached 61.1%, up from 56.6% the week prior.
Cotality, on average, collects 99% of auction results each week. Clearance rates are calculated across properties that have been taken to auction over the past week.
Auction activity is set to rise further this week, with around 2,750 homes scheduled to go under the hammer.
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Meet Caitlin Fono
Sr Associate, Research Support
Caitlin has spent more than a decade working with property data and analytics in various roles, earning a position on the CoreLogic research team in 2013. As a respected and highly experienced research analyst, Caitlin works with high frequency data sets, regularly updating our widely read auction reporting, weekly activity updates and customised data briefs.
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