There were 1,107 capital city homes taken to auction this week, virtually unchanged from last week when final results saw 1,108 auctions held. The steady week-on-week activity returned a preliminary auction clearance rate just above 70 per cent (70.4 per cent), coming in higher than last week’s Sunday preliminary figure of 68.3 per cent, which later revised down to 66.4 per cent at final figures.
The strengthening weighted average results of late can be mostly attributed to Melbourne and Sydney, where both cities have consistently reported clearances rates above 70 per cent over the past few weeks, with Sydney’s preliminary figure this week ticking over the 80 per cent mark. As the remaining results continue to come through we expect preliminary figures will revise lower as we usually see at final collection on Wednesday, however the consistent trend where final clearance rates hold above the 70 per cent mark imply the market is responding to the stimulus of lower mortgage rates, improved sentiment following the federal election and lower serviceability tests for borrowers, as well as low advertised stock levels.
Melbourne returned a preliminary auction clearance rate of 73.2 per cent, rising on last week’s final clearance rate of 70.9 per cent as volumes remained steady across the city (500 auctions).
There were 365 homes auctioned across Sydney this week, lower than the 386 auctions held last week. The lower volumes returned a preliminary auction clearance rate of 81.2 per cent increasing on the 72 per cent final clearance last week.
Canberra returned a preliminary auction clearance rate of 63.8 per cent this week, making it the best performing of the smaller auction markets, Adelaide followed with 58.6 per cent of homes selling, while Brisbane and Perth returned clearance rates below 40 per cent.