Reserve Bank rate cut boosts auctions
Close to three-quarters of the 2,820 homes that went under the hammer at auction were snapped up in the best set of results since last July.
BUYERS responded well to the RBA’s first rate cut since 2020 with the biggest preliminary clearance rate since July.
CoreLogic data showed that almost three-quarters of the 2,820 homes going under the hammer at auction were snapped up.
“Alongside the lift in auction volume, the trend in clearance rates has also continued to rise, with the preliminary success rate coming in at 72.1% this week, up from 71.2% a week ago,” CoreLogic’s Tim Lawless said.
“This was the highest preliminary clearance rate since the last week of July 2024.”
Melbourne recorded the most auctions, with 1,467 homes going under the hammer which is the highest weekly volume since the last week of last October.
Ray White Victoria and Tasmania chief auctioneer Jeremy Tyrrell said there was a sense of confidence being felt across the Melbourne market.
“Whilst it may be too early to feel the full effect of the Reserve Bank’s decision to lower the official cash rate by .25 basis points, there’s definitely a buzz in the air with the announcement fuelling market confidence,” he said.
“Auction volume continues to build as the state’s largest real estate network surpasses two hundred auctions across a week for the first time this year.
“In total there were 268 auctions scheduled for the week, an increase in volume of nearly 42 per cent year on year.
“Early reports have seen strong competition amongst buyers, with our data showing an average of 3.5 bidders across all conducted auctions and an equally strong clearance rate of 78.5 percent.
“Next week there are 304 auctions scheduled for the Ray White network in Victoria, with volume expected to increase as well as buyer demand, to round off what looks to be a strong first quarter for the real estate market.”
In Sydney, 959 homes went under the hammer, the highest volume since the week ending December 1st last year.
The 74.4% of successful auctions is down from 76.6% a week earlier – but the third consecutive week where the preliminary clearance rate has been above the 70% mark.
Across the smaller auction markets, Adelaide hosted the most auctions at 151, with 71.6% reported as successful.
In Brisbane, 138 homes went to auction in Brisbane, where there has been the lowest preliminary clearance rate of any capital at 53.1%.
The volume of auctions is set to slip this week, with approximately 2,540 auctions currently scheduled.
