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Auction volumes up 44 per cent over December quarter

Fuelled by a resurgence of Melbourne auctions, Australia ended the year with its best performing clearance rate of 2020. December quarter results and increased volume set auctions on a strong footing for 2021.

CoreLogic’s auction market review for the December quarter saw the combined capital city clearance rate continue to strengthen, while auction volumes increased by 44 per cent over the same period.

The combined capital city clearance rate was 69.4 per cent over the December quarter, making it the best performing quarter of 2020, followed by March 2020 at 62.5 per cent.

Auction volumes increased by 44.1 per cent over the three months to December, with 20,489 homes taken to auction across the combined capital cities, up from 14,216 over the September quarter.

CoreLogic’s Head of Research Australia, Eliza Owen, says the bulk of this uplift can be attributed to Melbourne.

“65.2 per cent of the uplift can be attributed to the resurgence of auctions scheduled across Melbourne. Vendor activity became pent up during stage four restrictions across the city, leading to a delayed flurry of activity,” Ms Owen said.

“As restrictions eased we saw new listings soar across Melbourne with people looking to sell, and last year the seasonal drop off in auction activity happened about a week later than we would typically expect, as agents tried to keep up with vendor demand.

“While the three months to December was the busiest quarter of 2020, it was significantly lower than the December 2019 quarter, when 26,923 homes were taken to auction across the combined capitals.

“Based on the momentum that was building in the market towards the end of 2020, along with strong selling conditions and record low interest rates, we would expect auction results to continue on a strong footing into 2021 as volumes ramp up, providing there’s no major resurgence of COVID- 19 in the community which would serve to dampen the momentum building late last year.”

Of the 20,411 auction results collected over the latest quarter, just 8.9 per cent reported a withdrawn result, compared to 18.7 per cent over the September quarter and 31.0 per cent over the June quarter.

Of the sold results, 36.8 per cent were sold prior to auction, compared to 42.0 per cent over the September quarter and 47.8 per cent over the June quarter.

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