Over the 3 months to September 2019, the clearance rate across the combined capital cities came in at 69.9 per cent across 16,730 auctions, the strongest quarterly clearance rate seen since the June 2017 quarter (71.7 per cent). In comparison, the previous quarter saw a higher volume of homes taken to auction (18,104), however the clearance rate was a lower 55.5 per cent. Over the September 2018 quarter, 20,653 homes were taken to auction, although the clearance rate was much lower at 53.6 per cent.
The weekly auction clearance rates have continued to improve over the September 2019 quarter, with the last 7 weeks of the quarter holding at or above 70 per cent, although auction volumes were lower than the previous quarter.
CoreLogic Head of Research, Tim Lawless comments on the latest results: “The September quarter has seen a remarkable lift in auction clearance rates, driven by consistently high results across the largest auction markets, Sydney and Melbourne."
"The lift in clearance rates highlights a better fit between buyer and seller pricing expectations and some urgency creeping back into the market as a larger pool of buyers compete for a smaller than usual number of homes for sale." said Lawless.
Although clearance rates are holding high in Sydney and Melbourne, the number of auctions held remains low, reflecting a slower start to the spring selling season.
Mr Lawless believes “There is a strong likelihood that advertised stock levels and the number of scheduled auctions will progressively rise as spring progresses and vendor confidence lifts on healthier housing market conditions."
Auction Market Review Highlights
With the exception of Adelaide, clearance rates across the capital cities outperformed both the previous quarter and the September 2018 quarter. While Adelaide saw the clearance rate increase over the 3 months to September 2019, over the same quarter last year the clearance rate was higher across a larger number of auctions.