Due to a processing issue resulting in an undercount of the number of scheduled auctions this week, we have reissued this week’s auction preview.
We can confirm the numbers in this release are now reflecting the revised counts. We apologise for any inconvenience this may have caused to your reporting.
Last week was expected to be the busiest week for auctions this year, however the disruptions of new policies preventing on-site auctions introduced last week saw auction market activity plummet.
Over 50% of properties reported a withdrawn result as of final figures last week and it’s expected this trend will continue, as scheduled auctions continue to either be withdrawn or revert to private treaty sales until social distancing policies are eased. Of course some auctions will continue as planned, with agents pivoting to digitally enable remote auctions.
3,051 capital city homes are advertised as going to auction this week, however, given current conditions, we are likely to again see a large proportion of these withdrawn.
In Melbourne, 1,249 homes are scheduled to take place this week, down -20% on the amount scheduled last week. In Sydney, there is set to be a 9% rise in scheduled auctions across Sydney over the week (1,402).
Across the smaller cities, scheduled volumes are down across Adelaide (-17%), Brisbane (-23%) and Tasmania (6 auctions). While scheduled volumes are expected to be higher in Canberra (10%) and Perth (39%).
While it’s likely auction activity will reduce substantially during these uncertain times, we will continue to closely monitor the auction market as agents continue to refine their virtual presence and methods on what will be the new norm, at least until social distancing policies are lifted.
Summary of last week’s results
Last week, the combined capital city final clearance rate dropped to its lowest level since CoreLogic commenced auction reporting in 2008. Over what was meant to be the busiest week for auctions this year, there were 3,289 auctions scheduled to take place last week, with only 37.3% reporting a successful result, most of which sold prior to auction. The clearance rate was heavily impacted by withdrawn auctions, with more than 50% of properties scheduled to take place reported as being withdrawn according to final figures.
Melbourne’s final auction clearance rate fell below 40% last week amidst challenging times, the city had 1,565 homes scheduled to go under the hammer, returning a clearance rate of 37.6% and recording a withdrawal rate of 51.6%. Of the sold results, 63.6% of properties sold prior to the scheduled auction date.
In Sydney, the final clearance rate came in at 40.3% across 1,279 auctions. Of the sold results, 73.2% reported as being sold prior to auction. While 49.2% of all results across Sydney reported as being withdrawn.
Across the smaller markets, both Adelaide and Brisbane’s final clearance rate took a hit with just over 20% over homes selling. Canberra came in with the highest clearance rate last week with 45% of homes selling.