Auction volumes dipped ahead of long weekend

According to property research group CoreLogic, there were 694 homes taken to auction across capital cities in the week ending 7 June 2020.

This figure is down from the previous week, which saw 856 homes sent under the hammer, and was also down on the same weekend in 2019, when 805 properties were taken to auction.

Of the 694 auctions taken to auction last week, 59.8 per cent recorded an initial positive result, down slightly from the 61.3 per cent clearance rate recorded in the previous week.

Comparatively, the same week last year recorded a 48.3 per cent clearance rate across its 805 auctions.

CoreLogic noted that the dip in volumes was to be expected over the week, due to the fact that most states and territories were preparing for the long weekend to celebrate the Queen’s Birthday (on Monday, 8 June).

Sydney reported 388 homes taken to auction over the week, and recorded a preliminary clearance rate of 62.2 per cent, while Melbourne saw a 64.1 per cent success rate across its 189 auctions.

Canberra recorded the highest clearance rate of the week at 68.2 per cent across its 31 auctions, while Adelaide saw 22 homes sent under the hammer with a preliminary clearance rate of 42.9 per cent.

Tasmania recorded no auctions over the week, while Perth saw just 14 homes taken to auction, and a preliminary clearance rate of 33.3 per cent.

The data comes as CoreLogic reports strong results in the number of homes sold in May when compared with April, despite falling GDP, a drop in wages paid, and the first month-on-month decline in property values since June 2019.

The results suggest that buyer demand is holding strong amid COVID-19.

In the 28 days to 31 May 2020, new listings rose 22.4 per cent on the previous period, but total listings fell by 2.9 per cent, meaning that even as more new stock came onto the market, buyer activity offset the additional stock.

[Related: Home sales on the rise despite struggling market]