There were 1,210 homes taken to auction across the combined capital cities this week, returning a preliminary auction clearance rate of 58.1 per cent. Last week, a higher 1,479 auctions were held and the final clearance rate increased to 52.5 per cent; the second highest clearance rate seen over the year-to-date. Compared to last year, volumes continue to trend lower each week, with almost double the volume of homes taken to auction over the same week in 2018 (2,279) when 58.2 per cent sold.
Although the clearance rate will adjust lower on the full set of results, the trend over the past two months has seen final auction clearance rates holding around the low-to-mid 50 per cent range and we expect a similar finalised result this week. While the trend in auction clearance rates certainly aren’t describing strong market conditions, with the success rate holding around ten percentage points higher than late last year, it reflects a better fit between buyer and seller expectations on prices.
In Melbourne, Australia’s largest auction market, a preliminary auction clearance rate of 56.8 per cent was recorded across 545 auctions this week, up slightly from the 56.6 per cent final clearance rate last week when a higher 672 homes were auctioned. One year ago, the clearance rate was a stronger 77.5 per cent across 1,099 auctions.
There were 441 auctions held in Sydney this week returning a preliminary auction clearance rate of 65.6 per cent; the strongest preliminary result across the capital cities, compared to 57.2 per cent across 539 last week, and 57.5 per cent across 787 auctions one year ago.
Across the smaller auction markets, preliminary results show that Perth was the best performing in terms of clearance rate with 53.8 per cent of auctions successful, however there was only 18 auctions held across the city. Brisbane was the worst performing auction market this week according to preliminary results with 83 homes auctioned and 39.2 per cent clearing.