Auction activity increases as spring has sprung

In the week ended 3 September 2023, 2,291 homes went under the hammer across the nation’s capital cities, an increase of more than 25 per cent on the same week last year (1,823), according to CoreLogic.

However, the first week of the spring selling season saw a dip in the clearance rate for the second consecutive week, with a preliminary clearance rate of 71.2 per cent (down from a 72 per cent preliminary result the week prior).

CoreLogic has suggested that the decline in the clearance rate was due to a jump in the withdrawal rate – from 7.7 per cent to 9.5 per cent – while approximately 19.3 per cent of properties were passed in at auction.

Melbourne remained the lead capital city for auctions, however, its overall auctions numbers fell to 991 homes, despite having recorded its busiest auction week since early April the week before.

Sydney followed closely behind with 933 homes auctioned, in its second-busiest week of the year (behind only the week ended 2 April 2023).

However, the harbour city also recorded its lowest preliminary clearance rate in four weeks, with 73.8 per cent of auctions reporting a successful result, down from 74.6 per cent the week before.

Activity across the smaller capitals rose in the first week of spring. Brisbane auctions were up by 8.3 per cent, while Canberra was up 31.4 per cent.

Perth and Adelaide saw drops in auction numbers, down -20 per cent and -18.3 per cent, respectively.

Brisbane also had the busiest market of the smaller capital cities with 159 homes auctioned across the city, surpassing Adelaide, which only had 103 and Canberra with 95.

However, the South Australian capital recorded the highest preliminary clearance rate among the smaller capitals with 82.8 per cent of auctions reporting a successful result, significantly greater than Brisbane, 66.7 per cent and Canberra, 63.6 per cent.

In Perth, two out of the five results collected had achieved a positive result, while the single auction held in Tasmania last week was also successful.

CoreLogic stated that it expects capital city auction activity to rise further this week as we progress into spring, with just under 2,400 homes currently scheduled for auction.

Speaking to Mortgage Business last month, CoreLogic head of research Eliza Owen said: “Compared to last year, the housing market and selling conditions are looking a little better.

“This time last year, we were seeing the shock of rate rises starting to settle in across the housing market.

“If you look at the same period last year, the combined capital [cities’] clearance rate was averaging around 55 per cent, as opposed to the average 65 per cent where it’s been the past few weeks.”

[Related: Housing market showing resilience going into spring: CoreLogic]