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Auction volumes up, clearance rate still slipping

Auction volumes increased this week, but still the preliminary clearance is lingering at its lowest point in almost a year.

CoreLogic reports 2526 homes were taken to auction across the combined capital cities this week, resulting in an initial success rate of 57.8 per cent.

Volume is up 83.2 per cent on last week when six of the eight states and territories celebrated the Queen’s birthday long weekend and 1379 auctions took place.

This time last year, 2400 auctions were held across the combined capital cities.

“Of the 1968 results collected so far, 57.8 per cent were successful – the lowest preliminary clearance rate since August last year,” CoreLogic said.

The previous week returned a preliminary clearance rate of 58.5 per cent, which revised down to 54.8 per cent at final figures.

Last week’s final success rate was the lowest final clearance rate recorded since late July 2020.

This time last year, 74.1 per cent of reported auctions were successful.

Melbourne

In Melbourne, 1264 homes were taken to auction this week, up from 450 over the previous week and 788 this time last year.

Of the 1016 results collected so far, 57.9 per cent were successful – up slightly from the previous week’s preliminary clearance rate of 57.4 per cent, which revised down to 52.4 per cent at final figures.

Last week’s final clearance rate was the lowest the city has seen since September 2021.

Over the same week last year, 69 per cent of auctions were successful.

Sydney

There were 793 auctions held across Sydney this week, compared to 541 over the previous week and 1157 this time last year.

Of the 624 results collected so far, 55.4 per cent were successful.

This was the lowest preliminary clearance rate the city has seen since April 2020.

“Once the remaining results are collected, Sydney’s final clearance rate may slip into the 40 per cent range, although it’s likely to just manage to hold above 50 per cent,” CoreLogic said.

Last week, Sydney’s preliminary clearance rate was 58.1 per cent, which revised down to 54.3 per cent at final figures.

The smaller capitals

Across the smaller capitals, Adelaide recorded the highest preliminary auction clearance rate (70 per cent), followed by Canberra (64 per cent), and Brisbane (52.2 per cent).

Adelaide was the busiest auction market this week with 179 homes taken to auction across the city, followed by Brisbane (174), Canberra (101), and Perth (14).

There was just one auction held in Tasmania this week.

Source: CoreLogic

Domain results

Domain has reported a preliminary clearance rate of 56 per cent after tracking 2191 auctions across the major capitals.

So far, results are in for 1500 of those auctions, with 840 properties selling (to the value pf $709 million), while 264 properties were withdrawn.

Last week, the final clearance rate was 53 per cent after 993 auctions took place over the Queen’s birthday long weekend.

Results were provided for 838 of those auctions, with 444 properties selling (to the value of $352.3 million), while 149 properties were withdrawn.

This time last year, the clearance rate was 70.8 per cent after 2741 properties went to auction.

Results were provided for 1940 of those auctions, with 1373 properties selling (to the value of $1928.4 million), while 201 properties were withdrawn.

Sydney

Sydney’s preliminary clearance rate is sitting at 53.6 per cent after 751 auctions took place this weekend.

So far, results are in for 476 of those auctions, with 255 properties selling (to the value of $285.7 million), while 134 properties were withdrawn.

Last week, Sydney’s final clearance rate was 49.9 per cent after 420 auctions took place.

Results were provided for 335 of those auctions with 167 properties selling (to the value of $176.1 million) while 91 properties were withdrawn.

This time last year, Sydney’s clearance rate was 73.7 per cent after 1012 properties were taken to auction.

Results were provided for 961 of those auctions, with 708 properties selling (to the value of $1247.8 million), while 92 properties were withdrawn.

Melbourne

Melbourne’s preliminary clearance rate is currently 56 per cent after 1134 properties were taken to auction this week.

So far, results are in for 832 of those auctions, with 466 properties selling (to the value of $346.2 million), while 114 properties were withdrawn.

Last week, Melbourne’s final clearance rate was 51.5 per cent after 343 auctions took place.

Results were provided for 297 of those auctions, with 153 properties selling (to the value of $94 million), while 44 properties were withdrawn.

This time last year, Melbourne’s final clearance rate was 65 per cent after 1447 properties went to auction.

Results were provided for 702 of those auctions, with 456 properties selling (to the value of $490.4 million), while 80 properties were withdrawn.

Ray White results

The Ray White Group reported auction volumes across the country rebounded this week after last week’s Queens birthday weekend slump.

The group had 630 auctions scheduled this week, up 22.3 per cent on the same time last year, while the number of properties on the market is up 4.04 per cent.

There were 379 auctions scheduled to go ahead on Saturday alone, with the group recording a preliminary auction day clearance rate of 67.2 per cent nationally.

The standout city by clearance rate was Adelaide, with a preliminary clearance rate of 81 per cent.

They noted buyers were not deterred by the recent interest rate rises, with strong bidding activity across the country.

Average registered bidders sat at 3.7 nationally, with an auction in Sydney’s Upper North Shore reporting a whopping 19 registered bidders who arrived to bid on a two-bedroom home in Roseville.

Sydney

Ray White New South Wales chief auctioneer Alex Pattaro said confidence had returned to the Sydney market this week.

“Buyers are feeling a little more confident than previous weeks. Now the election is over, buyers know what to expect in the market,” Mr Pattaro said.

“Buyers are factoring in future interest rate rises but so are sellers. It’s positive for both buyers and sellers. Sellers can be confident there are buyers and buyers can be confident sellers are willing to do a deal.”

Melbourne

Real estate activity saw a sharp increase across Melbourne this weekend following the Queen’s birthday long weekend last week.

Ray White Victoria and Tasmania CEO Stephen Dullens said the number of auctions had jumped once again.

“We’re back to full speed in the auction market this week, with over 200 Ray White auctions scheduled across Victoria,” Mr Dullens said.

“What we see is when there is clear air, again and again we experience strong auction numbers across the market.”

With recent interest rate rises and increased listings hitting the market post the election, the overall real estate landscape is returning to a more balanced level.

“We have seen across the last few weeks that strong activity remains in the market,” Mr Dullens said.

“Buyers appear to have priced in both the recent interest rate rises as well as the anticipated future moves by the Reserve Bank when making their real estate decisions

“Sellers can take confidence that there are a large number of buyers ready to transact, but this needs to be at the right price for the right property as the boom conditions of last year subside and we return to more normal and stable results.”

Brisbane

Ray White Queensland chief auctioneer Gavin Croft said there was an evident change in the market.

“The change in buyer behaviour has led agents to develop a stronger skillset and improved buyer servicing, and the quality of vendor management,” Mr Croft said.

“That quality of education to help our sellers make really good decisions is critical.

“Gone are the days when a property would sell itself, now agents’ skillsets are absolutely paramount as we start to see the shift in buyer behaviour.”

Ray White New Farm | Bulimba | Toowong | Clayfield had huge success at their auction event at the Calile Hotel on Saturday with an 80 per cent clearance rate.

Nine out of 12 properties sold under the hammer with the top result going to 76 Oxlade Street, New Farm for $5.52 million.

Adelaide

Ray White South Australia chief auctioneer John Morris said Adelaide’s auction clearance numbers had been spectacular.

“They’re still very strong clearance rates throughout Adelaide and South Australia,” Mr Morris said.

“Just 50 per cent of the way through my auctions for today I am 100 per cent sold, with an average seven bidder registrations per auction, and four of those participating.

“So far this year we’ve had 1300 auctions in South Australia with an 83.6 per cent clearance rate and an average of 7.6 bidder registrations.

“We’ve continued with our 30 per cent plus share of auctions around the state.

“Auctions are still very strong around South Australia, clearance rates still very strong, bidder registrations still very strong.”

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Cassandra Charlesworth

Cassandra Charlesworth is a features writer for Elite Agent Magazine with over 15 years’ journalism experience in metropolitan and regional newsrooms. She has a specialist interest in real estate, tech disruption and a good old-fashioned “yarn”.