The auction market is starting to bounce back from the seasonal slowdown, with almost three times the number of auctions held this week compared with last week, although volumes are lower than the same week last year. CoreLogic was tracking 779 auctions this week, compared with just 276 last week, while 881 homes were taken to auction this week last year. Although the overall number of auctions is lower than this time last year, Melbourne was the only capital city to see an increase in volumes year-on-year. The preliminary auction clearance rate, based on the 578 auction results reported so far, was recorded at 67.7 per cent across the combined capital cities, compared to 72.8 per cent last week and 68.8 per cent last year. All cities recorded a stronger preliminary clearance rate than what was recorded at the end of 2017, however, with auction activity only just starting to pick up, we should get a better idea over the coming weeks as to whether the clearance rates will revert back to the lower levels seen towards the end of last year.
This week, 290 Melbourne auctions were held and so far 232 results have been reported. The preliminary auction clearance rate of 72.8 per cent is lower than last week, when 78.1 per cent of the 73 reported auctions were successful. One year ago, Melbourne’s auction clearance rate was 77.7 per cent across 261 auctions. Towards the end of 2017, clearance rates sat around the 65 per cent mark, although auction volumes were significantly higher. Across Melbourne, the busiest region for auctions this week was the West, where 80 homes went under the hammer. Of the 65 reported results so far, 69.2 per cent have been successful. Melbourne’s Inner region recorded the strongest preliminary clearance rate at 88.9 per cent, however there were only 24 auctions held within the region and 18 results reported so far.
Across Sydney, 207 auctions were held this week, up from just 42 over the previous week. The preliminary clearance rate of 63.1 per cent is down from both last week (89.2 per cent), and this time last year, when a clearance rate of 72.3 per cent was recorded across 259 auctions. Clearance rates sat around the mid to low 50 per cent mark for the last 2 months of 2017, so it will be interesting to see if clearance rates continue to soften over the next few weeks as auction activity ramps up. Looking at the sub-regions of Sydney, the Central Coast region recorded the strongest clearance rate of 76.9 per cent across 19 auctions, while the North Sydney and Hornsby region had the highest volume of auctions (27).
There were 98 Brisbane homes taken to auction this week, with 56 results reported so far. The preliminary clearance rate for the city is 55.4 per cent, down from 92.9 per cent last week and lower than one year ago, when 57.1 per cent of the 102 properties taken to auction were successful. Across the Gold Coast 56 results have been reported so far, with a success rate of 48.2 per cent (27 sales).
Adelaide’s preliminary clearance rate was 76.7 per cent this week, higher than last week at 60.0 per cent and also higher than one year ago (60.8 per cent). There were 97 Adelaide auctions this week, 55 last week and 144 held over the comparable week last year.
In Perth, 30 auctions took place this week, with 12 results reported so far. Perth’s preliminary clearance rate of 66.7 per cent across these 12 results is higher than both last week’s result (15.4 per cent) and the clearance rate from one year ago (45.8 per cent).
Canberra’s preliminary auction clearance rate of 64.4 per cent this week is lower than last week, when the final auction clearance rate was 69.4 per cent and lower than the 70.5 per cent recorded last year.
CoreLogic has recorded just 3 auction results across Tasmania this week with 2 sales.