A long weekend in most states saw auction volumes drop this week, with 1393 auctions taking place across the combined capitals, resulting in a preliminary clearance rate of 58.5 per cent.
CoreLogic noted volumes were similar to the same weekend last year when 1413 auctions took place over the Queen’s Birthday long weekend, but they were well down on last week when 2644 auctions occurred.
Last week’s preliminary clearance was 62.3 per cent, with the final clearance rate revising down to 58.2 per cent.
“The final clearance rate has held below 60 per cent for the last two weeks and this week will likely be no different as the remaining results are collected,” CoreLogic said.
“This time last year, 73.6 per cent of reported auctions were successful.”
CoreLogic also noted clearance rates had dropped in most capitals as a result of changed selling conditions.
“Today’s preliminary clearance rates are the lowest over the year to date for most of the capital cities, including Sydney, Melbourne, Brisbane and Canberra, reflecting more challenging selling conditions for vendors,” CoreLogic said.
“We will see these conditions tested further next week as auction volumes rebound to around 2600 across the combined capitals.”
In Melbourne, just 446 homes were taken to auction this week, down from 1245 over the previous week, although up from this time last year when 355 auctions were held across the city.
Of the 366 results collected so far, 57.4 per cent have been successful.
This is down from the previous week’s preliminary clearance rate of 61.2 per cent, which revised down to 58.8 per cent at final figures.
Over the same week last year, 68.8 per cent of auctions were successful.
There were 552 auctions held across Sydney this week, compared to 912 over the previous week and 745 this time last year.
Of the 465 results collected so far, 58.1 per cent were successful.
This was lower than last week’s preliminary clearance rate of 59 per cent, which revised down to 53.3 per cent at final figures, and is the lowest final clearance rate Sydney has seen since April 2020.
The smaller capitals
Across the smaller capitals, Adelaide recorded the highest preliminary auction clearance rate (78.7 per cent), followed by Canberra (59.2 per cent) and Brisbane (48.0 per cent).
Brisbane was the busiest auction market this week with 161 homes taken to auction across the city, followed by Adelaide (145), Canberra (68) and Perth (21).
There were no auctions held in Tasmania this week.
Domain has reported a preliminary clearance rate of 58.6 per cent after tracking 992 auctions across the major capitals over the Queen’s birthday long weekend.
So far, results are in for 642 of those auctions, with 376 properties selling (to the value of $314.5 million), while 143 auctions were withdrawn.
Last week, the final clearance rate came in at 54.7 per cent after 2219 auctions occurred.
Results were provided for 1946 of those auctions with 1064 properties selling (to the value of $861.2 million), while 260 properties were withdrawn.
This time last year, the clearance rate was 67 per cent after 1282 properties went to auction.
Results were provided for 995 of those auctions, with 667 properties selling (to the value of $939.6 million), while 165 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 53.3 per cent after 420 properties went to auction this weekend.
So far, results are in for 272 of those auctions, with 145 properties selling (to the value of $161.4 million), while 88 properties were withdrawn.
Last week, Sydney’s final clearance rate was 50.8 per cent after 800 properties went to auction.
Results were provided for 693 of those auctions, with 352 properties selling (to the value of $349.7 million), while 149 properties were withdrawn.
This time last year, Sydney’s clearance rate was 68.7 per cent after 567 properties were taken to auction.
Results were provided for 527 of those auctions, with 362 properties selling (to the value of $606.6 million), while 74 properties were withdrawn.
Melbourne’s preliminary clearance rate is sitting at 57.9 per cent after 342 properties were taken to auction this weekend.
So far results are in for 228 of those auctions, with 132 properties selling (to the value of $85.5 million), while 41 properties were withdrawn.
Last week, Melbourne’s final clearance rate came in at 54.2 per cent after 1095 properties went to auction.
Results were provided for 977 of those auctions, with 530 properties selling (to the value of $388.2 million), while 95 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 63.8 per cent after 525 properties went to auction.
Results were provided for 279 of those auctions, with 178 properties selling (to the value of $206 million), while 69 properties were withdrawn.
Ray White results
The Ray White group said auctions powered ahead over the long weekend following the jolt of the super-sized interest rate rise, with buyers calmly factoring in more hikes to come.
The RBA tightened its monetary policy settings for the second month in a row this week, raising the cash rate target by 50 basis points to 0.85 per cent.
Ray White had 255 auctions scheduled for this Saturday around Australia, with another 348 auctions booked next weekend ahead of the winter school holidays.
On Saturday, the group cleared 70 per cent of its auctions under the hammer, with 4.1 average registered bidders and decent crowds recorded in all markets.
Over the week, the group cleared 68.6 per cent, the highest clearance rate for six weeks.
South Australia had an incredible day at 83 per cent clearance with Sydney on 74 per cent.
Sydney has recently been recording clearances between 55 per cent and 65 per cent, while Melbourne cleared 75 per cent on the day, and Brisbane cleared 67 per cent today.
Ray White Managing Director Dan White said high turnover was still a hallmark of today’s property market even after the first historic rate rise last month.
“The Australian property market was functioning with high turnover and not too much of a gap between buyers and sellers,” Mr White said.
“It was a big month in May and we did $6.2 billion in sales, up 29 per cent year-on-year, in a month with a change of government and a rate rise.
“Willing buyers who bought in May were already pricing in four to five interest rate rises so the next rise was to be expected and buyers are factoring in more to come.”
“Of course we take nothing for granted but right now we are defying the headlines.”
New South Wales
Ray White New South Wales Chief Auctioneer Alex Pattaro said it was a balanced week for the Sydney property market.
“We saw higher than recent average clearance rates and activity at open for inspections has been higher than previously recorded,” Mr Pattaro said.
“Activity on auction day suggests buyers are prepared to transact, though at the right price.
“Sellers on the market, and those that are coming to the market, can take plenty of confidence with what we are seeing.
“Yes, the clearance is down from last year however, we must remember that last year’s numbers were well above the long-term average whereas now we are seeing more normal and stable numbers.”
The long weekend in Victoria caused the usual slowdown in auction activity, as explained by Ray White Victoria and Tasmania CEO Stephen Dullens.
“The Queen’s Birthday long weekend in Melbourne has resulted in a drop in auction activity after a busy few weekends of auctions,” Mr Dullens said.
“Across Victoria, Ray White have just over 120 auctions scheduled this week – around 40 per cent less than last week and around half that of two weeks ago – while next week we’ll bounce back to around 200 scheduled auctions for the week.”
Despite the quieter Saturday, those auctions that did proceed performed at a similar to level of the last few weeks.
“As expected, we saw another rate rise by the Reserve Bank of Australia this week.
“Despite the lower numbers, results and activity levels per auction remained roughly consistent with the previous few weeks,” Mr Dullens explained.
“Increasing numbers of buyers are commenting that they are factoring increasing rates into their decision making and remain committed to getting on with the priority journey, with rates still low compared to long-term averages.”
Ray White Queensland Chief Auctioneer Gavin Croft said buyers appeared more composed and more measured while out to buy this weekend.
“Buyers are more careful and certainly being more considered in their approach today. I think everyone at the moment is certainly finding their feet, and property 60 days ago is certainly not seeing the same price that they would see today,” he said.
Ray White South Australia Chief Auctioneer John Morris said, despite the long weekend, there was certainly no shortage of auctions around the state with 150 going ahead this week.
“Some 36 per cent of these auctions were proudly displaying the name of our founder, Ray White, which is four times that of our nearest competitor.
Last week we had a clearance rate of about 80 per cent with six registered bidders per auction and over three of those participating.
“This week we headed into the weekend with a 92 per cent clearance.”