After the first rate rise in over a decade, auction volumes were down this week, with 2039 properties going under the hammer, resulting in a preliminary clearance rate of 64.7 per cent.
CoreLogic noted this week’s preliminary clearance rate overtook last week’s as the lowest of the year, according to the 1611 results collected so far.
“There is a chance that once final results are collected, the final clearance rate may slip below 60 per cent for the first time since late August 2021,” CoreLogic said.
Last week’s preliminary clearance rate was 67.2 per cent after 2699 properties went to auction, but revised down to 62.9 per cent at final figures.
This time last year, the clearance rate was a higher 77.2 per cent across the combined capital cities on the back of higher volume, with 3016 properties taken to auction.
In Melbourne, 895 homes were taken to auction this week, down from both the previous week when 1290 auctions occurred and this time last year when 1411 properties went under the hammer.
Of the 746 results collected so far, 64.6 per cent have been successful.
This is lower than last week’s preliminary clearance rate of 68.4 per cent, which revised down to 63.7 per cent at final figures.
Over the same week last year, 74.1 per cent of auctions were successful.
There were 654 auctions held across Sydney this week, compared to 914 over the previous week and 1146 this time last year.
Of the 516 results collected so far, 58.7 per cent were successful. This is lower than last week when the initial success rate was 62.3 per cent. It revised down to 58.2 per cent at final figures.
“Excluding the week ending 23 January 2022 when fewer than 100 homes were taken to auction across Sydney, this is the lowest preliminary clearance rate since April 2020,” CoreLogic said.
The smaller capitals
Across the smaller capitals, Adelaide recorded the highest preliminary auction clearance rate (81.2 per cent), followed by Canberra (75 per cent) and Brisbane (62.7 per cent).
Adelaide was the busiest auction market this week with 204 homes taken to auction across the city, followed by Brisbane where 185 auctions occurred.
Canberra was host to 85 auctions this week, while 12 auctions were held in Perth and four in Tasmania.
Domain has reported a preliminary clearance rate of 61.5 per cent after tracking 1677 auctions cross the major capitals this week.
So far, results are in for 1062 of those auctions, with 653 properties selling (to the value of $567.8 million), while 179 properties were withdrawn.
Last week, Domain reported a final clearance rate of 63.3 per cent after 2227 auctions took place.
Results were provided for 1879 of those auctions, with 1190 properties selling (to the value of $1055.3 million), while 238 properties were withdrawn.
This time last year, the clearance rate was sitting at 75.3 per cent after 2515 properties were taken to auction.
Results were provided for 2455 of those auctions, with 1849 properties selling (to the value of $2577.8 million), while 215 properties were withdrawn.
Sydney’s preliminary clearance rate has slipped to 58.5 per cent after 577 properties went to auction this week.
So far, results have been provided for 340 of those auctions, with 199 properties selling (to the value of $207.2 million), while 101 properties were withdrawn.
Last week, 818 properties went to auction, resulting in a final clearance rate of 56.4 per cent.
Results were provided for 707 of those auctions, with 399 properties selling (to the value of $419.9 million), while 150 properties were withdrawn.
This time last year, Sydney’s clearance was 79 per cent after 988 properties went to auction.
Results were provided for 963 of those auctions, with 761 properties selling (to the value of $1348.2 million), while 100 properties were withdrawn.
Melbourne’s preliminary clearance rate is sitting at 60.1 per cent after 767 properties went to auction this week.
So far, results have been provided for 539 of those auctions, with 324 properties selling (to the value of $256.1 million), while 58 properties were withdrawn.
Last week, Melbourne’s final clearance rate settled at 66 per cent after 1116 properties went to auction.
Results were provided for 944 of those auctions, with 623 properties selling (to the value of $509 million), while 73 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 72.4 per cent after 1229 properties went to auction.
Results were provided for 1208 of those auctions, with 875 of those properties selling (to the value of $1040.1 million), while 100 properties were withdrawn.
Ray White results
As the dust settled on the first interest rate rise in more than a decade, the Ray White Group noted many Australians were focused on how it would impact Saturday’s auction results.
“Auction punters were out and about despite the Reserve Bank of Australia’s announcement of a rate rise on Tuesday,” they reported.
The Ray White Group recorded a preliminary 66 per cent national clearance rate and an average of four registered bidders and 2.7 active bidders at auctions today.
However, Ray White chief economist Nerida Conisbee said the recent slowdown in market conditions was not necessarily bad news.
“Prices have increased by 30 per cent since the start of the pandemic. This level of growth is not sustainable and at some point, conditions had to slow,” she said.
“Right now, the most popular forecast being reported is for a 10 per cent fall in prices. Such a fall would take Australian median house prices back to October 2021.
“Almost everyone who purchased during the pandemic will still have seen a capital gain even if such a sharp fall in prices did occur.”
In the meantime, the auction method still netted sellers a strong return.
On average those who make it to game day achieved more than 13 per cent more on their sale price than if they had sold prior.
Ray White New South Wales chief auctioneer Alex Pattaro said the interest rate rise hadn’t affected top tier properties.
“Top tier properties continue to be the first choice for all buyers, however new buyers entering the market have concerns around rising interest rates. Property prices this week look stable despite some listings passing in,” he said.
“Sellers can take confidence in the four registered bidders Ray White auctions in Sydney are attracting and that they are still obtaining the best possible price for the market.”
Ray White Victoria chief auctioneer Matthew Condon said auction volume was down on Saturday in comparison to previous weeks, with 112 auctions scheduled across the state.
“This week’s interest rate rise announcement has seen buyers approach auctions with more caution,” Mr Condon said.
“Based on preliminary data from the Ray White Group, registered bidders across Victoria remained strong and consistent while the average number of active bidders slightly declined.
“It’s great to see that the market has adapted very quickly to this week’s announcement with buyers and sellers alike factoring this into their decision making process.
“Overall, there continues to be a high level of demand for quality property across Victoria.”
Ray White Queensland chief auctioneer Gavin Croft said it had been an interesting week for the property market.
“It was an interesting week in the lead up to today with a lot of talk around the upcoming election and interest rate rises,” he said.
“So there was just that little bit of anticipation about how buyers will behave today with the understanding of a few of these moving parts going on in the background.
“But today it’s been really strong and it’s been competitive.”
Ray White South Australia chief auctioneer John Morris said the front-line news is telling exactly the same story as South Australian auctioneers are reporting.
“The front page of today’s Adelaide Advertiser states that while there seems to be a national cooling of the market, Adelaide is bucking the trend and continuing with the heat that we have enjoyed in the first quarter of 2022,” he said.
“It’s clear the heat is still on in the Adelaide market!”