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Auction volumes hit nine-week high

The number of auctions held across Australia has hit its highest level in nine weeks, indicating ongoing improvement in seller confidence, according to CoreLogic.

There were 1,424 homes scheduled for auction for the week ending 28 June, with auction clearance rates holding reasonably firm under higher volumes. Last week returned a preliminary auction rate of 64.5 per cent.

In comparison, the previous week saw 1,251 homes taken to auction, returning a preliminary clearance rate of 66.1 per cent, which was later revised down to 59.6 per cent for final figures.

This time last year, a total of 1,295 homes were taken to auction across the capital cities, which returned a clearance rate of 62.9 per cent.

Auction volumes and clearance rates have been consistently rising over the last few weeks, in response to the easing of social distancing rules to curb the spread of the coronavirus. The resumption of on-site auctions and property inspections across the country have been particularly helpful in boosting activity.

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In fact, the auction volumes marked the highest number for nine weeks (since the end of April).

How the capital cities fared

In Melbourne, there were 623 homes scheduled for auction last week, returning a preliminary clearance rate of 62.7 per cent. Over the week prior, there were 558 homes taken to auction across the city, returning a final clearance rate of 60.1 per cent.

This time last year, 535 auctions were held in Melbourne, with a higher clearance rate of 68.6 per cent.

There were 614 homes taken to auction in Sydney last week, returning a preliminary clearance rate of 66.9 per cent. A total of 522 homes were taken to auction in the previous week, returning a final clearance rate of 61.6 per cent.

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One year ago, 503 auctions were held in Sydney, with a clearance rate of 67.9 per cent recorded.

Among the other capital cities, Brisbane recorded the highest number of auctions, with 84 homes going under the hammer, returning a preliminary clearance rate of 47.6 per cent, compared with 124 homes scheduled for auctions this time last year, with a clearance rate of only 32.4 per cent

There were 46 scheduled auctions in Adelaide with a preliminary clearance rate of 76.0 per cent, compared with 75 homes taken to auction last year, with a 56.9 per cent clearance rate recorded.

Canberra recorded the highest preliminary clearance rate last week of 88.5 per cent, but this was across only 34 homes taken to auction. Last year this time, only 28 auctions were scheduled with a clearance rate of 42.9 per cent.

Meanwhile, Perth recorded a 71.4 per cent preliminary clearance rate across 17 homes taken to auction. Last year, there were 28 homes taken to auction with a clearance rate of 36.4 per cent.

Home values and property listings drop

CoreLogic also noted that monthly home values (across the past 28 days) have fallen across the combined five capital cities by 0.8 per cent.

Sydney home values have fallen by 0.8 per cent, while Melbourne home values have declined by 1.0 per cent.

The biggest drop was in Perth, where values declined by 1.1 per cent. It was the only capital city to also record a drop in values across 12 months, declining by 2.4 per cent.

Brisbane and Adelaide recorded marginal monthly declines of 0.3 per cent and 0.2 per cent, respectively.

The number of properties listed for sale across the capital cities have also dropped considerably, with Perth once again recording the biggest decline of 29.4 per cent.

Canberra recorded a fall of 27.0 per cent, while Brisbane recorded a fall of 23.0 per cent, and Darwin a fall of 22.4 per cent. Listings in Hobart fell by 22.0 per cent, while Adelaide saw its listings reduce by 20.5 per cent.

Melbourne recorded the lowest decline in listings of only 5.1 per cent, while listings across Sydney reduced by 13.8 per cent.

Mortgage activity has reduced by 5.6 per cent month-on-month in South Australia, 5.2 per cent in Victoria, 3.1 per cent in NSW, and by 1.8 per cent in Tasmania.

Nationally, mortgage activity has seen a month-on-month slump of 2.8 per cent.

On the other hand, Queensland and Western Australia saw a slight uptick in mortgage activity, jumping by 0.3 per cent and 1.6 per cent, respectively. 

[Related: COVID-induced job losses ‘less likely’ to hit borrowers]

Auction volumes hit nine-week high
Auction volumes
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Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

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