Completed auction sales hit alarming low nationally
Volume was high in some capitals but clearance rates declined noticeably
CLEARANCE rates at home auctions across the country last weekend faded to the lowest completion number recorded so far this year.
Property analyst Cotality said preliminary results indicated only 66.6 per cent of auctions were successful.
The soft outcome comes after the preliminary clearance rate bounced back to 72.1 per cent last week but, after a sharp downward revision, the final result ended at 57.9 per cent, the lowest since mid-December last year.
Some 2871 capital city homes were auctioned last week, a 58 per cent jump on the volume a week prior, which was disrupted by the long weekend in some states.
Compared with the same week a year ago, the number of auctions was up 16 per cent, continuing a trend of strong listings activity that has been apparent more broadly in the flow of new listings coming to market, according to Cotality.
Melbourne led the capitals for auction activity, with 1389 homes going under the hammer, up 144 per cent on the week prior, which was impacted by Labour Day long weekend.
Some 66.9% of auctions reported a positive result based on the collection so far, down from 67.9 per cent the previous week (revised down to 52.6 per cent) and the lowest preliminary clearance rate since mid-December last year.
In Sydney last week, 1000 dwellings went for auction, a 6.2 per cent rise from the week prior and only the second time this year the volume of auctions has reached the 1000 mark.
The preliminary clearance, at 65.1 per cent, was the lowest so far this year and well down from the week prior at 74.3 per cent (revised down to 58.6 per cent once finalised).
Brisbane saw 190 auctions held last week, the second-highest number of auctions held so far this year. With a preliminary clearance rate of 65.9 per cent, this was Brisbane’s softest auction outcome so far this year.
Adelaide has 155 auctions, 45 per cent more than the previous week and on par with the week ending February 1 as the most auctions held so far this year.
The preliminary clearance rate bucked the weaker trend seen across most of the capitals, coming in at 84.0 per cent, the second-highest early result through the year-to-date.
Last week’s 81 per cent preliminary clearance was revised down to 72.9 per cent once finalised.
Canberra hosted 118 auctions last week, more than double the volume a week earlier (55), which was impacted by the Canberra Day long weekend.
The preliminary clearance rate sank to 55.4 per cent, down from 67.9 per cent the week prior.
Only 18 auctions were held in Perth with a preliminary clearance rate of 57.1 per cent and one auction was held in Tasmania.
“This week we should see a similar number of auctions held, with around 2900 homes currently scheduled to go under the hammer, rising to around 4000 auctions in the ramp-up to Easter,” said Gerard Burg, head of research at Cotality.
