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Auction volumes bounce following Easter lull

The number of homes taken under the hammer nearly doubled in a week, despite ongoing challenges in the auction market.

In the week ending 19 April 2020, 1,848 homes were scheduled for auction across the combined capital cities, according to figures released by CoreLogic.

This figure is a jump up from the previous week, where only 634 homes were scheduled to go under the hammer over the week leading up to, and including, the Easter long weekend.

According to CoreLogic, the jump in figures comes despite ongoing challenges for the auction market across the nation, with social distancing requirements causing the banning of onsite auctions and open homes.

The preliminary clearance rate across those 1,848 auctions was 39.1 per cent, largely consistent with rates seen over the last number of weeks following the COVID-19 outbreak, however this figure is likely to be revised upwards once more results are reported, according to CoreLogic.

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Over recent weeks, clearances have been heavily impacted by unprecedented auction withdrawal rates, while over the week ending 19 April, 50 per cent of all scheduled auctions were recorded as being withdrawn.

Meanwhile, of the 356 scheduled auctions that achieved a positive result over the week, 64 per cent were reported as being sold prior to auction.

Of all the capital cities, Canberra recorded the best auction results, returning a preliminary clearance rate of 66.7 per cent across its 41 scheduled auctions.

Melbourne saw the highest auction volumes, with 975 homes sent under the hammer throughout the week, and returned a preliminary clearance rate of 39.7, while Sydney saw a similar result of 39.8 per cent, across its 709 homes sent to auction.

Adelaide achieved a preliminary result of 30.8 per cent across its 28 auctions, whereas Brisbane’s 74 auctions returned a preliminary clearance rate of 20.8 per cent.

Commenting on the current state of the auction market, CoreLogic stated: “As confidence remains low and circumstances uncertain, it’s expected that fewer vendors will elect auction as their preferred method of sale and either convert to private treaty method or hold off on selling [altogether] and scheduled volumes will likely decrease over the coming weeks."

[Related: Auction rates continue to take a battering]

Auction volumes bounce following Easter lull
Auction volumes bounce following Easter lull
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