There were 2,599 homes taken to auction across the combined capital cities this week, returning a preliminary auction clearance rate of 72.9 per cent. Last week, 2,590 auctions were held and the final clearance rate came in at 70.1 per cent. Over the same week last year, auction volumes were higher with 2,701 homes going under the hammer across the combined capital cities, returning a final auction clearance rate of just 41.9 per cent.
In Melbourne, a preliminary auction clearance rate of 73.2 per cent was recorded across 1,217 auctions this week, while last week there were 1,242 auctions returning a final clearance rate of 74.3 per cent. One year ago, the clearance rate was just 41.4 per cent across 1,132 auctions.
There were 934 auctions held in Sydney this week, returning a preliminary clearance rate of 82.3 per cent. In comparison, there were 947 auctions held over the previous week and the final auction clearance rate was 71.9 per cent. One year ago, 1,035 auctions were held and the clearance rate came in at 44.8 per cent.
Across the smaller auction markets, Brisbane had the highest volume of auctions with 184 homes going under the hammer, returning a preliminary clearance rate of 46.4 per cent.
Over the next few weeks we will see the depth of buyer demand tested, with an increase in the number of properties taken to auction. Next week we are expecting auction numbers to lift by around 14%, to be the biggest week of auctions held so far this year. Clearance rates across the largest cities have mostly remained above 70% since July, implying that vendors remain in a strong selling position. With advertised supply remaining low and buyer demand rising, FOMO has once again becoming a factor in the market as buyers sense some urgency to buy before prices rise further. With auction volumes set to rise, it will be important to see whether clearance rates can hold up under the increased level of supply being brought to market over the coming weeks.