More houses available but selling them is still tough

HOUSE auction numbers rose significantly across the nation last week but clearance rates remained down, according to property data experts Cotality.

Across Australia’s capital cities, 1882 auctions were held last week, 33.1 per cent more than the previous week.

The total was still 41.8 per cent lower than the same week last year. This was the second consecutive week that capital city auction volumes were more than 40 per cent below last year's levels.

Auction volumes rose in most cities, led by a 68 per cent increase in Melbourne. As auction volumes rose, the preliminary clearance rate fell.

Cotality said, of the capital city auctions with results reported, 48.4 per cent were successful, down from 51.2 per cent the previous week. The preliminary clearance rate has stayed below 50 per cent in three of the past four weeks.

§ Melbourne auction numbers rise as vendors adjust

The number of homes taken to auction in Melbourne increased significantly from 495 to 831. However, compared to the same week last year, the city held 54.7 per cent fewer auctions.

"This substantial reduction is partly attributable to softer selling conditions while the implementation of the state’s reserve price transparency requirements has also prompted a period of adjustment while vendors assess how best to sell their homes," Cotality said.

The preliminary clearance rate declined by 1.4 percentage points to 54.8 per cent, marginally below the spring-to-date average of 55.4 per cent.

§ Sydney clearance rate falls below 50 per cent

For the first time in 12 weeks, Sydney’s preliminary clearance rate fell below 50 per cent. The result of 48.2 per cent was only just above the recent low of 47.3 per cent in June.

Sydney hosted 631 auctions, up 10.7 per cent on the previous week, but auction volumes were 34.1 per cent lower than the year prior.

§ Brisbane records the lowest capital city clearance rate

Brisbane had by far the lowest preliminary clearance rate of any capital city, at 25.2 per cent.

It was the city's fourth-lowest preliminary result so far this year. With 200 homes taken to auction, Brisbane’s auction volumes were 25 per cent higher than the previous week.

The city was also one of the few capitals with higher auction volumes than a year ago, up 6.4 per cent from the same week last year.

§ Auction results across the other capitals

In Adelaide, 141 homes went to auction last week. This was 16.5 per cent more than the previous week but 2.1 per cent fewer than the same week last year.

Against a spring-to-date average of 44.3 per cent, the preliminary clearance rate was slightly lower at 42.5 per cent.

A 13.8 percentage-point drop brought the ACT’s preliminary clearance rate to 52.1 per cent.

Year on year, auction volumes in the ACT were one-third lower, though the total of 60 auctions was 11.1 per cent higher than the previous week.

Half of the reported results from Perth’s 19 auctions were successful. Tasmania did not hold any auctions last week.