Auction Rates Slump to Mid-40s
Auction clearance rates have slumped again with 45 per cent of homes selling across the combined capitals last week.
Preliminary results show a national average clearance rate of 45.3 per cent but this is expected to fall below 45 per cent once results are finalised in coming days.
The results mark the sixth consecutive week that auction volumes have sat below 45 per cent, reducing again week-on-week.
A total of 2,614 properties were taken to auction across the combined capitals last week, lower than the previous weeks tally of 2,749 and significantly lower than the corresponding week last year.
Related: Sydney and Melbourne House Prices Will Fall 20%: AMP
| City | Total auctions | Corelogic auction results | Cleared auctions | Uncleared Auctions | Clearance rate |
|---|---|---|---|---|---|
| Sydney | 853 | 557 | 268 | 289 | 48.1% |
| Melbourne | 1,283 | 1,036 | 478 | 558 | 46.1% |
| Brisbane | 169 | 70 | 21 | 49 | 30% |
| Adelaide | 154 | 79 | 36 | 42 | 46.2% |
| Perth | 52 | 15 | 5 | 10 | 33.3% |
| Canberra | 100 | 73 | 32 | 41 | 43.8% |
| Weighted Average | 2,614 | 1,829 | 840 | 989 | 45.3% |
Melbourne was host to 1,283 auctions this week with preliminary results showing a clearance rate of 46.1 per cent, increasing from last week when the final clearance rate was a lower 42.7 per cent across 1,378 auctions.
Melbourne's south east experienced the lion's share of successful sales with 53 per cent of properties finding new owners.
There were 853 auctions held in Sydney with preliminary results showing a 48.1 per cent clearance rate, up from 41.6 per cent across a higher volume of auctions last week.
Over the same week last year 1,007 homes were taken to auction across the city returning a clearance rate of 52 per cent.
Sutherland and the city and inner south experienced high clearance rates of 67.9 per cent and 63.5 per cent respectively while a mere 29 per cent of properties sold in Parramatta.
Related: Weak Market Conditions to Impact House Prices: Report
With a smaller volume of properties on the market, Adelaide recorded a 46.2 per cent clearance rate, although only slightly more than half of the 154 auctions listed had been reported.
Across the smaller auction markets, Canberra and Tasmania were the only places to see auction volumes fall week-on-week.
As further late results are received there stands the chance that the that the final clearance rate for the week could be revised below 40 per cent, a new low in the current cycle.
Preliminary clearance rates for the previous week of 47 per cent was revised down to show a final figure of just 41.3 per cent, the lowest level since late 2011.
