Steady as she goes for auction clearance rates
But auction volume rates are still low, trailing year-on-year numbers for nine consecutive weeks.
AUCTION clearance rates across the country dropped marginally last week but there was still a silver lining.
The preliminary auction clearance rate declined to 50 per cent, down from 54.8 per cent the previous week.
But the result was stronger than the sub-50 per cent numbers seen across the three weeks from June 15 to July 5.
Property data analysts Cotality said the steadier result was partly due to a lower withdrawal rate of 20 per cent.
“Previously, nearly a quarter of auctions were withdrawn, which negatively impacted earlier clearance rates,” Cotality said.
Auction volumes remained low, with 1365 auctions last week.
While this was a 4.7 per cent increase from the previous week, it was 12.6 per cent below the same week last year.
“After exceeding prior-year levels through mid-May, volumes have now trailed last year for nine consecutive weeks,” Cotality said.
Reflecting weaker market conditions, new listings are falling nationally, and fewer of these properties are being sold via auction, with vendors favouring private treaty sales instead.
Melbourne was the busiest city last week, with 599 homes up for auction, up four per cent on the week before but 10.7 per cent fewer than a year ago.
Its early clearance rate rose slightly to 56.5 per cent from 56.2 per cent, the strongest preliminary result in five weeks.
Sydney held 444 auctions last week, unchanged from the previous week and 24.1 per cent below last year.
Here, the preliminary clearance rate fell sharply to 47.4 per cent, having stayed above 50 per cent for the prior two weeks, leaving it just above the recent low of 47.3 per cent from the week ending June 28.
Among the mid-tier capitals, Brisbane’s clearance rate remained weak, Cotality said.
The city saw 163 auctions, up 25.4 per cent on the previous week and 5.8 per cent above last year, but only 35.9 per cent sold, down from 43 per cent a week earlier.
That said, this was still ahead of the 23.8 per cent clearance rate from three weeks ago.
In Adelaide, 108 homes went to auction, up 28.6 per cent on the previous week and 25.6 per cent higher than the same week last year.
Adelaide’s preliminary clearance rate slipped to 54.9 per cent, from 59.1 per cent the week before.
Canberra held 42 auctions, down 30 per cent from the previous week and 25 per cent from a year ago.
The preliminary clearance rate was 27.8 per cent, its weakest early reading since March 2019. Perth held eight auctions and Tasmania had one.
