Auction volumes were slightly lower this week, with 2635 properties going under the hammer across the combined capitals to return a preliminary clearance rate of 62.3 per cent.
CoreLogic noted this volume is down on both last week when 3226 auction were held and also the same weekend last year when 2668 auctions took place.
Their data also indicates the initial success rate is slightly lower than last week when 63.7 per cent of auctions proved successful. The final clearance rate for last week later revised down to 59.3 per cent, marking the first time since late August 2021 that the success rate had slipped below 60 per cent.
This week’s final success rate is likely to see a similar scenario, with CoreLogic tipping it will hold below 60 per cent again once final results are collected. This time last year, the clearance rate was a higher 70.6 per cent across the combined capital cities.
In Melbourne, 1235 homes went to auction this week, which was slightly lower than the 1478 auctions that occurred the previous week, but higher than the same week last year when 1081 auctions took place.
Of the 1006 results collected so far for this week, 61.2 per cent have been successful.
Last week the preliminary clearance rate was 62.9 per cent, but revised down to 60.4 per cent at final figures.
Over the same week last year, 64 per cent of auctions were successful.
There were 915 auctions held across Sydney this week, compared to 1109 over the previous week and 1164 this time last year.
Of the 708 results collected so far, 59 per cent were successful.
This was lower than the previous week’s preliminary clearance rate of 62.8 per cent, which revised down to 56.4 per cent at final figures.
The smaller capitals
Across the smaller capitals, Adelaide recorded the highest preliminary auction clearance rate (75.8 per cent), followed by Canberra (71.1 per cent) and Brisbane (65.2 per cent).
Adelaide was the busiest auction market this week with 211 homes taken to auction across the city, followed by Brisbane (133) and Canberra (125).
There were 15 auctions held in Perth this week, and just one auction in Tasmania.
Domain has reported a national preliminary clearance rate of 58.7 per cent after tracking 2220 auctions across the major capitals.
So far, results are in for 1533 of those auctions, with 900 properties selling (to the value of $739.8 million), while 260 properties were withdrawn.
Last week, the final clearance rate settled at 58.1 per cent after 2708 auctions took place.
Results were provided for 2382 of those auctions, with 1383 properties selling (to the value of $1136.1 million), while 318 properties were withdrawn.
This time last year, Domain’s national clearance rate was sitting at 68.5 per cent after 2589 properties went to auction.
Results were provided for 2162 of those auctions, with 1482 properties selling (to the value of $2083.6 million), while 392 properties were withdrawn.
Melbourne returned a preliminary clearance rate of 58.4 per cent after Domain tracked 1095 auctions across the city this week.
So far, results are in for 811 of those auctions, with 474 properties selling (to the value of $347.4 million), while 99 properties were withdrawn.
Last week, Melbourne returned a final clearance rate of 58 per cent after 1322 auctions took place.
Results were provided for 1206 of those auctions, with 700 properties selling (to the value of $509.8 million), while 115 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 62.3 per cent after 1274 auctions took place.
Results were provided for 901 of those auctions, with 561 properties selling (to the value of $658.5 million), while 275 properties were withdrawn.
Sydney’s preliminary clearance rate was 54.5 per cent this week, according to Domain, after 801 auctions took place across the harbour city.
So far, results are in for 523 of those auctions, with 285 properties selling (to the value of $297.4 million), while 146 properties were withdrawn.
Last week, Sydney’s final clearance rate was 55.3 per cent after 1012 auctions took place.
Results were provided for 856 of those auctions, with 473 properties selling (to the value of $478.5 million), while 178 properties were withdrawn.
This time last year, Sydney’s final clearance rate was 72.4 per cent after 1038 properties went to auction.
Results were provided for 987 of those auctions, with 715 properties selling (to the value of $1247.2 million), while 102 properties were withdrawn.
Ray White results
The Ray White Group noted the first weekend of winter brought with it hundreds of property transactions across the country, proving that any pre-election jitters were well and truly in the past.
The group reported a national preliminary clearance rate of 76 per cent and the standout state of the day was Queensland, coming in with an 87 per cent clearance rate.
“While auction volume remains steady, the national clearance rate represents a slight softening in comparison to the first Saturday of June last year which sat at 80 per cent,” the Ray White group said.
“Resounding feedback from auctioneers today was that buyer numbers were very strong, but some bidders showed a little more caution in their approach.
“Vendors are still reaping the rewards when it comes to choosing an auction as their method of sale. On average, sale prices achieved under the hammer were 10 per cent higher than the highest offers prior.
“With growing families upsizing and empty nesters downsizing, the topic of the week was around spare bedrooms.”
In her recent economic update, Ray White Chief Economist Nerida Conisbee analysed the Australian Bureau of Statistics’ latest Survey of Income and Housing.
“Australia is overall well supplied with spare bedrooms,” Ms Conisbee said.
“Although 4 per cent of households didn’t have enough bedrooms, primarily those with multi-families residing in the one property, more than three quarters of households have a spare bedroom.
“In comparison, 12.5 per cent have more than three spare bedrooms. Overall, there are around 13 million spare bedrooms across the country.
“Australia has a shortage of suitable homes in well located areas but it certainly doesn’t have a shortage of bedrooms.”
Ray White NSW chief auctioneer Alex Pattaro said in line with the last couple of weeks, top-tier properties were selling the best.
“Sellers can have confidence that there is still very strong buyer activity, despite it being less than last year,” he said.
“The buyers in the market today were still paying good prices, particularly for those homes that ticked all the boxes.
“Buyers are slightly more cautious due to the fact the cash rate will likely rise this week again, however they’re already factoring repayments into their bidding strategy.
“Sellers need to be reminded that they are transacting in the same market they are buying,” Mr Pattaro said.
Ray White Victoria / Tasmania chief auctioneer Matt Condon said Saturday had seen a slight change in pace in Melbourne, with buyers being slightly reactive rather than proactive in their bidding strategy.
“We have seen an increase in registered and active bidders per auction, and once properties were announced on the market, we saw a lot of bidding activity continue,” Mr Condon said.
“We continue to see a high level of demand for quality properties across Victoria.”
Ray White Queensland chief auctioneer Gavin Croft said since the election and interest rate rise, he could sense the market was going through a slight transition of buyers and sellers finding their feet.
“What we have seen today is that when a fair and reasonable offer comes throughout the campaign, sellers are tending to take it instead of holding out,” Mr Croft said.
“Of the eight auctions I had booked in for me personally today, five sold prior.
“The next week or two might be the same, however June auctions are looking particularly good. It is usually a quieter month of the year, but volume numbers are not slowing down.”
Ray White South Australia / Northern Territory chief auctioneer John Morris said the rain in Adelaide was relentless on Saturday, and an icy blast had hit the city for the first weekend of winter.
However, the weather didn’t seem to dampen the spirits of buyers.
“We have a preliminary clearance rate of 83 per cent, and while bidder rates have been slightly lower this week at just over five per auction, three of these bidders are participating,” Mr Morris said.
“Ray White are holding 36 per cent of all auctions throughout the state this week, but the most impressive statistic is that 48.6 per cent of all vendors chose the auction method to sell their property with Ray White.”