Rate cut keeps auctions heading through the roof
Homes going under the hammer are at busiest level since before Easter - with 2,816 auctions scheduled this week.
AUCTION activity is surging across the country following last week’s Reserve Bank rate cut.
CoreLogic reports around 2,816 homes are scheduled to go under the hammer this week. That’s the busiest week since before Easter.
Cotality’s Tim Lawless said: “What a difference a rate cut makes.”
Capital city auction volumes jumped 40.8 per cent last week to 2,512.
“The preliminary auction clearance rate rose to 71.3 per cent, the second highest early result so far this year,” Mr Lawless said.
A similar spike followed the February cut.
Then, the preliminary clearance rate hit 72.1 per cent before easing in the weeks that followed.
“The preliminary clearance rate found a floor at 64.2 per cent in the last week of April,” the analyst added.
Melbourne was the busiest market.
There were 1,263 homes taken to auction, the most since the week before Easter.
“73.7 per cent of Melbourne auctions have recorded a successful result so far,” he said.
That’s in line with the previous week and marks four straight weeks above 70 per cent.
Sydney held 814 auctions last week.
The preliminary clearance rate rose to 72.2 per cent, up from 65.2 per cent a week prior.
It was Sydney’s first clearance rate above 70 per cent in ten weeks.
Brisbane recorded 201 auctions, the second-highest volume so far this year.
But the clearance rate dropped to 58.5 per cent from 59.6 per cent the week before.
Adelaide’s volume dipped to 120 auctions.
“The preliminary clearance rate leapt to 74.6 per cent, up from 64.1 per cent the week prior,” he noted.
Canberra hosted 96 auctions, the third-busiest week this year.
Its clearance rate rose to 61.1 per cent, up from 56.6 per cent.
“Auction activity is set to rise further next week,” he said.
