The preliminary clearance rate continues to trend lower after auction volumes rose 38 per cent this week to see 2847 homes taken to auction across the combined capital cities.
CoreLogic reports this was the busiest auction week since the pre-Easter season spike, but remains 2 per cent lower than the volume of auctions held this time last year.
As seen throughout the past month, the preliminary clearance rate is continuing to decline.
This week it fell for the fourth consecutive week to come in 10 basis points lower than last week at 64.6 per cent, with 2228 results collected so far.
“This week’s preliminary clearance rate overtakes the week prior (64.7 per cent) as the lowest preliminary clearance rate of the year to date,” CoreLogic said.
Last week’s rate revised down to 61.8 per cent at final figures while this time last year 77 per cent of auctions held were successful.
In Melbourne, 1268 homes went under the hammer this week – up 40.1 per cent from the week prior (905) but down 5.7 per cent compared to this time last year (1345).
Of the 1044 results collected so far, 64 per cent returned a successful result, down 60 basis point from last week’s preliminary clearance rate (64.6 per cent), which was revised to 59.8 per cent at final numbers.
Over the same week last year, 75.4 per cent of auctions held in Melbourne were successful.
Across Sydney, 934 auctions were held this week. This was a 41.7 per cent increase on the week prior when 659 auctions occurred.
With 738 results collected so far, Sydney was amongst the only two capitals to see a rise in its preliminary clearance rate, with 61.1 per cent of actions held returning a successful result.
This week’s rate is up 2.4 percentage points from the week prior, when a preliminary rate of 58.7 per cent was recorded. That success rate revised down to 55.3 per cent at final figures.
“Despite the increase in the preliminary clearance rate, Sydney’s withdrawal rate remains high, with 22.1 per cent of this week’s auctions being withdrawn from the market,” CoreLogic noted.
“This time last year 78.9 per cent of the 1150 auctions held across Sydney returned a successful result.”
The smaller capitals
Across the smaller capitals, Adelaide continues to record both the highest preliminary clearance rate and the busiest auction week, with 263 auctions returning a preliminary clearance rate of 78.8 per cent.
Canberra was amongst the only two capitals to record a rise in its preliminary clearance rate (76 per cent) up one percentage point from the week prior (75 per cent) with 127 auctions.
Brisbane’s preliminary clearance rate fell 2.3 percentage points, with 60.3 per cent of the 235 auctions held returning a successful result.
In Perth, six of the nine results collected so far have been successful, while results for three of the four auctions held in Tasmania have been collected so far. None were successful.
Domain has reported a preliminary clearance rate of 62.1 per cent after tracking 2372 auctions across the major capitals.
So far, results are in for 1624 of those auctions, with 1008 properties selling (to the value of $877.1 million), while 278 properties were withdrawn.
Last week, the final clearance rate was 58.1 per cent after 1679 properties went to auction.
Results were provided for 1395 of those auctions, with 811 properties selling (to the value of $694.9 million), while 189 properties were withdrawn.
This time last year the clearance rate was 74.3 per cent after 2371 properties went to auction.
Results were provided for 2270 of those auctions, with 1687 properties selling (to the value of $2460.5 million), while 229 properties were withdrawn.
Sydney’s preliminary clearance rate was 57.3 per cent this week after 810 properties went to auction.
So far, results have been provided for 543 of those auctions, with 311 properties selling (to the value of $331.8 million), while 165 properties were withdrawn.
Last week, Sydney’s final clearance rate settled at 53.1 per cent after 579 properties went to auction.
Results were provided for 478 of those auctions, with 254 properties selling (to the value of $266.8 million), while 111 properties were withdrawn.
This time last year, Sydney’s clearance rate was 77.1 per cent after 969 properties went to auction.
Results were provided for 935 of those auctions, with 721 properties selling (to the value of $1351.1 million), while 81 properties were withdrawn.
Melbourne had 1165 properties go to auction this week, resulting in a preliminary clearance rate of 62.3 per cent.
So far, results are in for 853 of those auctions, with 531 properties selling (to the value of $431.9 million), while 93 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 55.9 per cent after 767 properties went to auction.
Results were provided for 662 of those auctions, with 370 properties selling (to the value of $291.5 million), while 58 properties were withdrawn.
This time last year. Melbourne’s clearance rate was sitting at 72.4 per cent after 1154 properties went to auction.
Results were provided for 1086 of those auctions, with 786 properties selling (to the value of $953.9 million), while 130 properties were withdrawn.
Ray White results
The Ray White Group reported a busy weekend for auctions, with buyers out in force during the last weekend before the election.
The group conducted 299 auctions on Saturday, recording a preliminary auction day clearance rate of 70 per cent across the country.
Ray White chief economist Nerida Conisbee said a new cycle was now evident.
“Our best measure of demand is the number of people actively bidding at auction. If you are prepared to put in an offer for a property, it would follow that you are prepared to buy,” Ms Conisbee said.
“Since we started tracking bidding activity in July 2018, we have on average seen 2.7 bidders per auction (based on 47,816 auctions over this time period).
“The lowest number was seen at the end of 2018 when we saw a significant drawback in investor activity. The highest was in September 2021, the absolute peak of the pandemic driven boom.
“Average active bidders have come down from the peak. In April, the average was 2.9. It was still above the long-term average but has clearly come down from the September peak.
“It is also lower than what was experienced in April 2021 but a lot higher than April 2019 and April 2020.
“As to how this number fares over the next few months will depend on how far interest rates go up, however, the winter slowdown is also a consideration.”
Ray White recorded an average of 4.1 registered bidders across the country on Saturday and 2.6 of those were active bidders.
Ray White NSW chief auctioneer Alex Pattaro said Sydney continued to see top tier homes sell under the hammer for great prices.
“It still remains a strong time to transact in the market compared to the same dates from 2019,” Mr Pattaro said.
“Prices are still strong and lending remains at low levels. Despite more homes passing in, we’re seeing homes transact relatively quick post auction.”
With many buyers and sellers trying to get in before the election weekend, it was another busy week for auctions across Victoria.
Ray White Victoria and Tasmania CEO Stephen Dullens said despite these interruptions, the market remained very active.
“We know that during election campaigns auctions slow down a little – so this weekend is a busy one prior to voters going to the polls next Saturday,” Mr Dullens said.
“We’ve got over 200 auctions scheduled across Victoria this week, slightly ahead of the same time last year.”
Despite the interrupted April and distraction of the election campaign, strong results continued to be achieved.
“At the end of last year we saw our strongest period of new listings coming to market on record which flowed into the first quarter of 2022.
“With more properties available for sale and a greater choice for buyers, strong results continue to be achieved showing once again the high demand that still exists across the Victorian property market.”
The rain couldn’t stop the success of Ray White auctions on Saturday, with crowds sheltering indoors as properties sold under the hammer.
“Whilst the depth and the spirit of the bidding is not what is was a couple of weeks ago, it’s been such a positive day out in the Brisbane marketplace,” Ray White QLD chief auctioneer Gavin Croft said.
“We had really positive results which Ray White continues to deliver.
“Despite the rain, those genuine buyers were certainly out today, no question around it.”
Ray White South Australia chief auctioneer John Morris said the memo that went out about the real estate market falling had fallen on deaf ears for Adelaide residents.
“We reported an 88.1 per cent clearance for Ray White auctions last week. There were seven average registered bidders per auction with 3.4 of those participating,” he said.
“While that has dropped slightly this week to 6.1, the active bidding has remained exactly the same at 3.4.
“The 63 auctions we have scheduled this week is 40 per cent of the whole market, which just proves Ray White yet again is dominating the auction space in South Australia.
“The change in weather doesn’t seem to stop people from coming out, and neither do the rumours of a changing market.
“Lots of properties are selling, lots of bidders are turning up, and it’s still looking like a positive outlook for those of us in South Australia.”