Auction volumes, clearances on the rise

The latest data from property research group CoreLogic has stated that nearly 2,000 homes were taken to auction across the capital cities in the week ending 22 September 2019, an increase in volumes of 21 per cent compared to the previous week.

The data showed that the spring selling season is well underway, with increasing volumes recorded week-on-week since the beginning of September. 

The week also recorded a preliminary auction clearance rate of 74 per cent, making it the sixth consecutive week recording a clearance rate over 70 per cent, and increasing on last week’s final clearance rate of 72.8 per cent.

While there was an uptick in auction activity week-on-week, national volumes are still down on those recorded in the same week last year.

However, while there were 400 more properties taken to auction in the same week last year, only about half of these were sold, at a final clearance rate of 52.4 per cent.

Over the last five weeks, houses have consistently performed better under the hammer than units, with a 74.9 per cent preliminary clearance rate for houses, versus 71.2 per cent for units.

In the week ending 22 September, Melbourne recorded the highest volumes across the nation, with 1,022 homes taken to public auction. 

Of these properties, 77.8 per cent were sold, up from the previous week, which held a final clearance rate of 74.5 per cent and lower auction volumes (826 properties).

The clearance rates are well up from the same week last year, where 52.8 per cent of the 1,161 Melbourne homes taken to auction were sold.

Meanwhile, Sydney recorded an increase in both clearance rates and volumes over the week.

Of the 647 homes taken to auction in the NSW capital, 76.6 per cent were sold under the hammer, compared to the previous week, in which 76 per cent of the 585 auctioned homes were sold.

The same week in 2018 recorded a higher number of Sydney homes go to auction, a total of 851 properties, with a significantly lower success rate of 51.1 per cent.

The data also showed that despite the start of the spring selling season, the number of new capital city properties listed for sale is down 14.6 per cent from 12 months ago, with total properties currently on the market down 10.2 per cent compared to last year.

[Related: Evidence of housing recovery mounting]