Auction rates reveal a ‘softening trend’

According to the latest market update by CoreLogic, while auction clearance rates remain above the long-term average across the largest capital cities, the four-week average is showing signs of a “softening trend”.

“[This] can be attributed to Sydney’s final clearance rate drifting lower over the past two months, while the trend in Melbourne is holding firmer in the high 70 per cent range,” CoreLogic commented.

Further, preliminary results show that while Melbourne and Sydney maintain their place as the strongest auction markets, Adelaide and Brisbane have shown a rebound in the downwards clearance rate trend this week.

“This week’s combined capital city preliminary clearance rate is stronger than one year ago, when 67.7 per cent of capital city properties cleared, however auction volumes are lower than this time last year when 2,230 homes were taken to auction across the combined capitals,” CoreLogic said.

Last week (the week ending 7 May 2017), 1,662 capital city auctions were held, and preliminary results show that 1,365 auctions have been reported so far, with a preliminary clearance rate of 74.6 per cent, rising from a final clearance rate of 74.0 per cent the week prior across 2,350 auctions.

In Sydney in particular, auction clearance rates were recorded at 74.3 per cent from 811 auctions last week, compared to 72.4 per cent from 596 auctions over the previous week.

“Although Sydney auction clearance rates increased over the week they remain lower than the Easter long weekend and have nudged lower through April compared with clearance rates recorded through late February and March,” CoreLogic said.

[Related: Auction clearance rates slip]