Lowest auction clearance rate in more than a month

CLEARANCE rates slipped amid the perfect storm that was Melbourne Labour Day long weekend and Cyclone Alfred.

It was the second week that even preliminary rates were under the 70 per cent mark, according to CoreLogic’s Tim Lawless.

There were lower volumes too, with more than 1,000 fewer auctions held – mainly due to withdrawals ahead of the cyclone and the Victorian holiday.

Sydney held the most auctions, with 871 homes going under the hammer.

The 70.7 per cent clearance rate is down from 71.4 per cent a week earlier and the lowest preliminary clearance rate in five weeks.

Only 496 homes went to auction in Melbourne, down from 1,376 the week before.

A total of 70.5 per cent of auctions have been reported as successful so far, in-line with last week’s preliminary result of 70.3 per cent.

SQM research managing director Louis Christopher said: “In Sydney, the clearance number ticked down as well. That’s a bit disappointing.

“We were expecting a little more confidence by this time following the rate cut, and it hasn’t really happened.”

Whether the lack of movement in the market will trigger another rate cut is unclear.

But Mr Christopher thinks an April cut is likely, especially as he believes more monetary policy easing was needed to boost buying activity.

“There are more people at auctions – but we haven’t as yet seen a clear lift in buyer demand,” he said.

Economist Dr Andrew Wilson also noted that the Sydney auction market reported a slightly lower clearance rate.

But he said it remained clearly in favour of sellers with a sharp fall in stock.