The combined capital city preliminary clearance rate improved this week, coming in at 65.3 per cent on the back of slightly lower auction volumes.
CoreLogic reports 1162 properties were taken to auction at the weekend with the clearance rate marking an improvement on last week’s result of 59.2 per cent, which later revised down to 54.1 per cent.
The result is also on par with one year ago when 1108 capital city homes were taken to auction over the same week, returning a final auction clearance rate of 66.4 per cent.
There were 351 Melbourne homes scheduled for auction this week, lower than the 540 over the week prior.
The lower volumes saw Melbourne’s preliminary clearance rate improve, with 59.8 per cent of auctions successful as fewer withdrawn auctions were recorded, lifting the success rate.
“Of the 296 results collected so far, 86 were withdrawn results which is quite a bit lower than last week’s 217 withdrawn results, equating to a 29 per cent and 40 per cent withdrawal rate respectively,” CoreLogic noted.
“Of the sold results collected just under 50 per cent reportedly sold prior to the scheduled auction date.”
One year ago, 500 Melbourne homes were auctioned returning a final clearance rate of 70.9 per cent.
In Sydney, 578 homes were taken to auction this week returning a preliminary auction clearance rate of 68.2 per cent. This marked an improvement on last week’s final clearance rate of 60.6 per cent across a slightly higher 594 auctions.
Over the same week last year, Sydney volumes were a lower 386 with a success rate of 72 per cent.
The smaller capitals
Across the smaller cities, Adelaide and Canberra came in with equal highest clearance rate over the week with 80 per cent of homes selling at auction.
Domain also reflected a higher clearance rate of 62.4 per cent as a result of lower volumes nationally and a reduced withdrawal rate in Victoria.
This week their data indicated 918 properties were listed for auction, 529 results were reported, 429 sales were made (at a collective value of $295.9 million) and 158 properties were withdrawn.
This compared to a clearance rate of 52.4 per cent last week when 1189 properties were scheduled for auction, 794 results were reported, 570 sales were made (to the value of $411.9 million) and 294 properties were withdrawn.
This time last year, volume and clearance were similar. In the same week in 2019, 915 properties were scheduled for auction, 779 results were reported, 548 sales were made (to the value of $552.7 million) and just 65 properties were withdrawn.
Melbourne was pivotal to this week’s auction results, with far fewer properties going to auction than in the weeks prior. This in turn helped reduce the withdrawal rate and lifted successful results.
This week Melbourne clocked a preliminary clearance rate of 57.6 per cent on the back of 285 properties taken to auction. Of those 165 results were reported, 136 sales were made (to the value of $68.9 million) and just 71 properties were withdrawn.
Last week, Melbourne’s clearance rate was a much lower 45.3 per cent after 527 properties were listed for auction, 280 results were reported, 220 sales were made (valued at $133.3 million) and an astounding 206 properties were withdrawn.
This time last year, Melbourne returned a clearance rate of 69.8 per cent after 470 properties were listed for auction, 403 results were reported, 294 properties sold (to the value of $267.1 million) and 18 properties were withdrawn.
Sydney also showed a preliminary clearance rate improvement this weekend, coming in at 65.5 per cent compared to a final clearance rate last week of 58.2 per cent.
This week 508 properties were listed for auction, 286 results were reported, 237 properties sold (to the value of $187. 6 million) and 76 properties were withdrawn.
Last week 546 properties were scheduled for auction, 408 results were reported, 288 properties sold (to the value of $236.3 million) and 87 properties were withdrawn.
In the same week last year, Sydney achieved a clearance rate of 68.5 per cent off the back of 316 properties listed for auction. Of those 268 results were reported, 209 properties sold (to the value of $253.6 million) and 37 properties were withdrawn.
Ray White results
Ray White remained upbeat about the current auction market, noting ‘there seemed to be no stopping the thriving seller’s market as bidders across the country defied all the negative property speculation”.
The Ray White Group booked a preliminary clearance rate of 71.6 per cent.
Sydney was the star of the show with a strong preliminary clearance rate of 76.7 per cent. Ray White also reported 5.1 registered and 2.5 active bidders per property, on average.
Ray White Group Managing Director Dan White said August had started strongly.
“In July, we had 1457 scheduled auctions, up 33 per cent on the same month last year. This week, we had 359 scheduled – up 9.5 per cent on last year,” Mr White said.
“So we’re seeing very strong results on the back of big volumes, further illustrating the health of the Australian real estate market.”
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said it was another incredible week as clearance rates remained red-hot across the state.
“The clearance rate is hovering at circa 70 per cent. Activity at auctions continues to grow and we are seeing more first home buyers dip their toe in the market,” Mr Pattaro said.
“Open for inspection attendance continues to blossom with more inspection attendees rolling in at opens. The average number of bidders at auctions remains at five with three being active .
“The Sydney property marketing continues to remain resilient. This is a great start to August which is typically a slower time of the year.
“The monthly outlook looks positive and would suggest that sellers need to consider their options as now is an awesome time to be a part of the market.”
Ray White Victoria
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said despite increased uncertainty in Victoria, the real estate market again exceeded expectations this week.
“Based on preliminary data from the Ray White Group, today has seen a higher average of registered and active bidders in comparison to this time last year,” Mr Condon said.
“This was certainly evident at our online auctions, with large crowds logging in to watch the auctions, as multiple bidders competed for their desired property.
“It was also great to see that once properties were announced on the market and selling, we were continuing to see competition past that point, with a number of properties selling well in excess of reserve price.
“It’s a privilege to be able to achieve exceptional results for our clients while operating in a safe environment by being 100 per cent online.
“Overall, Ray White Victoria is expecting a strong auction day clearance rate this week.”
Ray White QLD Chief Auctioneer Mitch Peereboom said strong results had continued in the Sunshine State this week, with competitive bidding across multiple auctions.
“When we look at the market place and how it’s performing, we know buyers are wanting to see the social proof of who else is out there and what they are willing to pay,” Mr Peereboom said.
“The question we have is, what are you waiting for? We know that right now we have so much activity in the market and it underwrites our confidence that now is the time to list your property.”
Ray White SA Chief Auctioneer John Morris said buyers were once again out in force in the Adelaide sun and Ray White continued to dominate the auction market.
“We’re looking at a trifecta of strength when it comes to auctions at the moment, with strong clearance rates and both registered and active bidders staying at near-record levels,” Mr Morris said.