Preliminary auction results show 55.9 per cent of homes sell this week as fewer auctions are held across the capital cities.
The combined capital cities saw fewer homes taken to auction this week with a total of 1,400 held, down from the prior week when 1,671 auctions took place. The lower week-on-week activity returned a preliminary auction clearance of 55.9 per cent, which is higher than the previous week’s 52.6 per cent final clearance rate; although we expect as more results flow through the final auction clearance rate could be lower relative to last week.
The weighted average has remained within the mid-50 per cent range for each of the last 8 weeks, while one year ago 65-70 per cent of homes were selling over the same period. Although the capital city weighted average is substantially lower than a year ago, auction results are holding stronger relative to the 2010-2012 downturn in home values when the capital city clearance rate held below 50 per cent between mid-2011 and early 2012.
There were 632 Melbourne homes taken to auction this week, returning a preliminary clearance rate of 58.2 per cent. Last week, 791 auctions were held across the city with a lower 57.2 per cent success rate.
In Sydney, 55.1 per cent of properties sold this week, up from last week when final result saw less than half of Sydney homes successful at auction (49.7 per cent). However, there were fewer auctions held this week compared to last, with 544 homes taken to market down from the 634 auctions last week as of final figures.
Across the smaller auction markets, Canberra returned the strongest preliminary clearance rate of 64.7 per cent while only 30.8 per cent of homes sold in Perth.
Auction results by property type
Interestingly, while the main capital city markets have seen clearances rates trend lower this year, the sub-region of Geelong has been a stand out performer, with an average clearance rate of 78.6 per cent over the year-to-date.