The preliminary clearance rate has dropped to its lowest level in more than two years after auction volumes further declined this week.
CoreLogic reported volumes dropped by around 500 properties compared to last week, with 1864 homes taken to auction across the combined capital cities, resulting in an initial success rate of 55 per cent.
The volume is also lower than last year when 2168 properties went to auction during the same week, and that decline is expected to continue across the school holidays, with around 1700 auctions slated to take place next weekend.
CoreLogic noted, with just over half of all this week’s auctions returning a successful result, this week marked the lowest preliminary clearance rate since April 2020.
Last week saw an initial success rate of 59.8 per cent, which revised down to 56.8 per cent at final figures.
This time last year, 72.1 per cent of reported auctions were successful.
Melbourne
Melbourne was host to 628 auctions this week, down from 1000 the previous week and 1073 this time last year.
Of the 518 results collected so far, 56.8 per cent have been successful.
This is the lowest preliminary clearance rate the city has seen since the week ending 19 September 2021 (56.4 per cent).
The previous week saw a preliminary clearance rate of 61 per cent, which revised down to 59 per cent at final figures.
Over the same week last year, 73.1 per cent of auctions were successful.
Sydney
There were 766 auctions held across Sydney this week, compared to 890 over the previous week and 756 this time last year.
Of the 629 results collected so far, 52.5 per cent were successful – the lowest preliminary clearance rate the city has seen since April 2020.
The previous week recorded a preliminary clearance rate of 55.9 per cent, which revised down to 52.9 per cent at final figures.
Once the remaining results are collected, it is likely Sydney’s final clearance will slip below 50 per cent.
The smaller capitals
Across the smaller capitals, Adelaide recorded the highest preliminary auction clearance rate this week (71.3 per cent), followed by Canberra (51.2 per cent), Perth (50 per cent) and Brisbane (43.8 per cent).
Brisbane’s preliminary clearance rate is the lowest it has been since the week ending 8 November, 2020 (36.4 per cent), while Canberra’s is the lowest since the week ending 12 April, 2020 (43.5 per cent).
Adelaide was the busiest auction market this week with 192 homes taken to auction across the city, followed by Brisbane (154), Canberra (101) and Perth (21).
There were just two auctions held in Tasmania this week.
Domain results
Domain has reported a preliminary clearance rate of 55.6 per cent after tracking 1422 auctions across the major capitals.
So far, results are in for 945 of those auctions, with 525 properties selling (to the value of $406.5 million), while 181 properties were withdrawn.
Last week, the final clearance rate settled at 54.3 per cent after 1911 auctions took place.
Results were provided for 1706 of those auctions, with 927 properties selling (to the value of $708.4 million), while 254 properties were withdrawn.
This time last year, the clearance rate was 68.9 per cent after 1756 auctions took place.
Results were provided for 1599 of those auctions, with 1102 properties selling (to the value of $1419.6 million), while 246 properties were withdrawn.
Sydney
Sydney’s clearance rate is this week sitting at 55.8 per cent after 615 properties went to auction.
So far, results ae in for 385 of those auctions, with 215 properties selling (to the value of $191.2 million), while 123 properties were withdrawn.
Last week, Sydney’s final clearance rate was 51.9 per cent after 772 properties went to auction.
Results were provided for 661 of those auctions with 343 properties selling (to the value of $322.8 million), while 149 properties were withdrawn.
This time last year, Sydney’s clearance rate was 67.8 per cent after 741 properties went to auction.
Results were provided for 594 of those auctions, with 403 properties selling (to the value of $682.7 million), while 145 properties were withdrawn.
Melbourne
Melbourne’s clearance rate is 54.9 per cent after 536 properties went to auction.
Results were provided for 390 of those auctions, with 214 properties selling (t the value of $154.1 million), while 46 properties were withdrawn.
Last week, Melbourne’s clearance rate was 53.8 per cent after 848 properties went to auction.
Results were provided for 782 of those auctions, with 421 properties selling (to the value of $291.5 million), while 94 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 70.2 per cent after 793 properties went to auction.
Results were provided for all of those auctions, with 562 properties selling (to the value of $621.2 million), while 79 properties were withdrawn.
Ray White results
It may have been pouring in many parts of the country on Saturday but the weather didn’t dampen enthusiasm at auctions, according to the Ray White Group.
On the first Saturday of the new financial year, the group recorded a 59 per cent clearance rate national with 4.1 registered bidders and 2.5 active bidders on average.
Despite the rain, those sellers who took their property to auction netted on average 12.51 per cent more than if they had sold prior.
“This proves that, despite the slow down in market conditions, auctions are still the way to go,” the group said.
Of the major capital cities, Sydney and Adelaide recorded some of the highest average registered bidder numbers at 4.9 and 4.8 respectively.
Meanwhile, Ray White Melbourne finished on a preliminary clearance rate of 69 per cent and Brisbane’s average active bidder numbers were up on last year at 2.5 per auction.
Ray White’s top auction sale was in Chiswick, Sydney where Mario and Jessica Carbone of Ray White Drummoyne sold 3 Hezlet Street for $4.605 million under the hammer. The property was sold to a buyer who had only physically inspected it on the day.
The top number of registered bidders also belonged to Sydney, and saw Hayden Richards from the Ray White Touma Group sell 26/42 Turner St, Redfern for $780,000 with 13 registered bidders in attendance.
Sydney
Ray White New South Wales chief auctioneer Alex Pattaro said the wet weekend certainly didn’t scare buyers from securing a home today.
“We continue to see a shift in seller expectations with more sellers keen to meet the market when a willing buyer is prepared to arrive on auction day,” he said.
“Buyers require competition in order to pay a premium price, which is why we continue to encourage sellers to list their home as auctions to ensure they can obtain a premium market price.”
Melbourne
Ray White Victoria chief auctioneer Matthew Condon said auction volume continues to remain strong with over 150 auctions scheduled this week for Ray White Victoria.
“With more properties available for sale across Victoria combined with the potential of future interest rate rises, buyers and sellers alike are factoring this into their decision making process,” he said.
“Preliminary data from the Ray White Group has revealed a slight increase in both registered and active bidders at auction, however buyers are noticeably cautious with their bidding strategy and are more reactive as opposed to proactive when bidding.
“Although the real estate landscape has returned to a more balanced market, there is still a high level of demand for quality properties and agents within our network continue to work exceptionally hard to achieve great results for their clients.”
Adelaide
Ray White South Australia chief auctioneer John Morris said the network finished off the financial year with a bang in South Australia.
“We had almost 3,000 auctions scheduled to go ahead throughout the state in the financial year 2021-22, an 81.4 per cent auction day clearance rate and an average of eight registered bidders per auction,” he said.
“Internal auction share (auction listings as opposed to private treaty listings) was at 43 per cent as an average across the financial year.
“We called almost 30 per cent of all auctions throughout South Australia through the year. There were just shy of 9,000 auctions called in South Australia and almost 3,000 of those were Ray White.
“In the new financial year, it’s not looking like anything is slowing down in South Australia.
“There are some expectations needing to be lowered slightly by the vendors as we aren’t hitting the reserves in quite the same way we were in late 2021 and early 2022 but I’m sure we’re still going to be selling up a storm.”
