According to CoreLogic’s Property Market Indicator Summary, auction markets continue to be strong, with the combined capitals’ weighted average preliminary clearance rate holding above 80 per cent last week (ending 7 February 2021).
Every capital city recorded a clearance rate above 70 per cent as volumes continued to surge higher following the festive period "slowdown”.
There were 1,287 homes taken to auction across the combined capital cities last week, compared with 884 auctions in the week prior and up from 1,167 in the same week last year.
Last week concluded with a preliminary auction clearance rate of 83.8 per cent, a slight improvement on the 81.1 per cent preliminary result from the week prior. However, when compared with the prior comparative period, the result was up drastically from last year’s clearance rate of 67.7 per cent.
According to CoreLogic, the result may come in above last week’s clearance rate revised down to 77.2 per cent by final figures on Wednesday, given the higher preliminary figure.
In Melbourne, a preliminary auction clearance rate of 80.8 per cent was recorded across 592 auctions last week, up from 390 auctions, returning a final clearance rate of 80 per cent the week prior. One year ago, the clearance rate was just 68.5 per cent across 419 auctions.
Additionally, there were 449 auctions held in Sydney, returning a preliminary clearance rate of 89.1 per cent. In comparison, there were 270 auctions held over the previous week, and the final auction clearance rate was 76.7 per cent. One year ago, 384 auctions were held across the city and the clearance rate came in at 77.6 per cent.
Across the smaller auction markets, Canberra returned the highest preliminary clearance rate of 92.7 per cent, followed by Adelaide (82.8 per cent), Perth (75 per cent) and Brisbane (74.6 per cent).
“Such strong auction results signal further upwards pressure on housing prices amid extremely tight advertised supply levels and above average buyer demand,” CoreLogic warned.
[Related: Melbourne boosts quarterly auction volumes]