Clearance rates to fall from recent heights

The latest data from property research group CoreLogic has stated that 1,324 homes went under the hammer across capital cities in the week ending 6 October, up slightly from 1,278 homes the previous week.

While national volumes have increased slightly, both preliminary and predicted final auction clearance rates dropped nationally over the week.

The data shows a preliminary clearance rate of 71.3 per cent for the week; however, CoreLogic anticipate the final rate to be revised below 70 per cent, for the first time since mid-August.

Comparatively, the previous week recorded a preliminary clearance of 74.4 per cent, and a final clearance rate of 71 per cent.

CoreLogic has noted some disturbances to the auction market over the last two weeks, largely caused by two major grand finals taking place in the nation’s biggest markets.

The data suggests that the NRL grand final significantly affected volumes in Sydney, with only 316 homes taken to auction, compared to 950 properties the previous week.

This fall was largely negated by a bump in auction activity across Melbourne, with 777 homes taken to auction, up from just 107 in the previous week, which capped off with the AFL Grand Final. 

Despite these disruptions, Sydney and Melbourne continue to outperform the rest of the nation in terms of clearance rates, with Sydney achieving a 79.8 per cent clearance rate, and Melbourne clearing 73.8 per cent.

While auction activity continues to be down year-on-year, national clearance rates are well above those recorded in 2018.

The same week last year saw 1,817 homes sent to auction across the capital cities; however, just under half of these properties were sold under the hammer, with a national final clearance rate of just 49.5 per cent.

In Sydney, the final clearance rate for the same week last year fell below the national average, at 46.1 per cent, whereas Melbourne achieved a slightly higher result of 51.8 per cent.

[Related: Top end of town driving market rebound]