There were 1,292 capital city homes taken to auction over the final week of June, returning a preliminary auction clearance rate above 60 per cent for the third consecutive week (66.5 per cent). Last week, a higher 1,484 homes were auctioned with 60.5 per cent reporting a successful result at final figures.
The higher auction results align with the trend in housing values, where the rate of decline has been consistently improving through 2019, largely driven by improved conditions across Sydney and Melbourne. If we see auction clearance rates holding above the 60 per cent mark consistently, it’s a firm sign that buyer and seller price expectations are more balanced and housing prices are finding a new floor.
Both Melbourne and Sydney returned a preliminary auction clearance rate above 70 per cent this week, however this will likely revise lower as final results are collected and fall in the high 60 per cent range.
Melbourne returned a 70.6 per cent preliminary auction clearance rate this week, increasing on the 68.9 per cent final clearance rate last week. Although volumes were lower week-on-week, with 536 homes auctioned down on the 635 auctions held the previous week.
Volumes were down week-on-week across Sydney, with 503 auctions held across the city down on the 558 auctions held over the week prior. Sydney returned a preliminary auction clearance rate of 72 per cent this week; a substantial increase on last week’s final clearance rate (60.9 per cent), making it the best performing auction market according to preliminary results.
The performance was varied across the smaller auction markets this week, with Adelaide returning the strongest preliminary result with 68.9 per cent of auctions successful, while only 33.3 per cent of homes sold across Perth.