The preliminary clearance rate has reached its highest point since May after auction volumes increased this week.
CoreLogic reported 1799 properties went under the hammer across the combined capitals, resulting in an initial success rate of 63.4 per cent.
This week’s volume is 11.2 per cent higher than last week and is an increase of 36.7 per cent compared to two weeks ago.
Both previous weekends were impacted by public holidays in multiple states.
“With 1441 results collected so far, the combined capitals preliminary clearance rate held above 60 per cent for the sixth consecutive week at 63.4 per cent,” CoreLogic said.
This is 1.1 percentage points higher than the previous week’s initial success rate of 62.3 per cent, and also represents the highest combined capital preliminary clearance rate since late May.
“Despite the upwards trend in the volume of auctions, this week’s auction activity is significantly below the number of auctions held this time last year (2708) when selling conditions were stronger and clearance rates were higher (80.2 per cent),” CoreLogic said.
Melbourne hosted the busiest auction week, with 721 homes taken to auction across the city this week.
The previous week saw 833 auctions held across Melbourne, while a combination of the Queen’s memorial public holiday and the AFL grand final saw the number of auctions plummet to just 130 the week prior.
This time last year, 1351 homes went under the hammer.
Of the 619 auction results collected so far, Melbourne recorded its highest preliminary clearance rate since early May (68.4 per cent), with 66.1 per cent of auctions returning a successful result.
The previous week recorded a preliminary clearance rate of 64.3 per cent, while 77.3 per cent of auctions held this time last year were successful.
Sydney hosted 686 auctions this week, up 41.7 per cent from last week, when the Labor Day long weekend saw just 484 homes actioned.
With 545 results collected so far, Sydney’s preliminary clearance rate rose 90 basis points, from 60.4 per cent last week to 61.3 per cent this week.
This was Sydney’s highest preliminary clearance rate since mid-August (63.4 per cent).
Despite the rise in the preliminary clearance rate, Sydney’s withdrawal rate rose from 17 per cent last week, to 21.1 per cent this week, while the portion of properties passed in at auction fell to its lowest rate since early March (17.2 per cent) to 17.6 per cent.
This time last year, 81.7 per cent of the 825 auctions held across Sydney were successful.
The smaller capitals
Compared to the previous week, auction activity rose across Canberra by 86.9 per cent, Adelaide by 44 per cent and Brisbane by 5.1 per cent, but was down 47.4 per cent in Perth.
Adelaide hosted the busiest week amongst the smaller capitals, with 144 homes auctioned, followed by Brisbane (124) and Canberra (114).
Canberra’s preliminary clearance rate rose above 70 per cent for the first time since early June, with 70.9 per cent of auctions reporting a successful result, while Adelaide’s and Brisbane’s preliminary clearance rate came in at 69.7 per cent and 49.4 per cent respectively.
In Perth, 10 homes went to auction this week, so far only one has returned a successful result. No auctions were held in Tasmania this week.
Domain has reported a preliminary clearance rate of 63.5 per cent after tracking 1536 auctions across the major capitals.
So far, results are in for 1045 of those auctions, with 664 properties selling (to the value of $571.6 million), while 147 properties were withdrawn.
Last week, the final clearance rate settled at 59.1 per cent after 1159 auctions took place.
Results were provided for 1000 of those auctions, with 591 properties selling (to the value of $468.8 million), while 118 properties were withdrawn.
This time last year, the clearance rate was 77.7 per cent after 1715 properties went to auction.
Results were provided for 1661 of those auctions with 1291 properties selling (to the value of $1818.8 million), while 163 properties were withdrawn.
Sydney’s preliminary clearance rate is 63.5 per cent this week, after 631 properties went to auction.
So far, results have been provided for 392 of those auctions, with 249 properties selling (to the value of $265.2 million), while 98 properties were withdrawn.
Last week, the final clearance rate was 56.3 per cent for Sydney, after 288 properties went to auction.
Results were provided for 229 of those auctions, with 129 properties selling (to the value of $124.5 million) while 49 properties were withdrawn.
This time last year, Sydney’s clearance rate was 81.5 per cent after 567 properties went to auction.
Results were provided for 536 of those auctions, with 437 properties selling (to the value of $842.9 million), while 48 properties were withdrawn
Melbourne’s preliminary clearance rate is currently sitting at 63.6 per cent after 650 properties went to auction.
So far, results are in for 503 of those auctions, with 320 properties selling (to the value of $246.3 million), while 36 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 59.6 per cent after 727 auctions took place.
Results were provided for 641 of those auctions, with 382 properties selling (to the value of $288.8 million), while 60 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 72.6 per cent after 836 properties went to auction.
Results were provided for 818 of those auctions, with 594 properties selling (to the value of $705.6 million), while 101 properties were withdrawn.
Ray White results
Ray White reported huge crowds at auctions nationally on Saturday, particularly in Melbourne where some standout auctions saw crowds of up to 150 people watching the live market action.
The group noted registered bidder numbers were also firming and many agents were reporting a sentiment shift in the air in the wake of the latest rate rise this week, which was smaller than most commentators were predicting at 25 basis points.
The Ray White Group reported a preliminary clearance rate of 66 per cent on Saturday, with 305 Ray White auctions scheduled nationally.
Auction crowd sizes swelled to 30 people on average nationally, a lift on recent weeks.
The average number of registered bidders jumped nationally to 4.2 (from 3.6 bidders last weekend), while the number of actively participating bidders sat steady at 2.6.
Sydney had a preliminarily clearance rate of 70 per cent on Saturday, albeit on light volume of 92 auctions booked, but with 5.2 average registered bidders per auction, it proved better than the national average.
Ray White New South Wales Chief Auctioneer Alex Pattaro said this weekend was the strongest weekend of bidding the leading group had seen in quite a while.
“Buyers are looking to secure a home and will stretch their budgets when competition presents itself.
“Despite higher energy within the market, good auction processes and practice are obtaining the premium results.
“There is a shortage of good stock within the marketplace. And we would recommend any seller who was considering coming to the market to come now to take full advantage of what we have seen,” Mr Pattaro said.
Ray White Victoria Chief Auctioneer Matt Condon said activity within the real estate landscape was on the increase with 156 auctions scheduled this week for the group in Victoria.
“This exceptional Melbourne weather and large crowd sizes also created a great auction day atmosphere.
“Based on preliminary data from the Ray White group, this week has seen on average 3.7 confirmed bidders per auction,” Mr Condon said.
“An increase in auction volume combined with more properties scheduled to launch to market will provide more choice for buyers.
“Sellers that chose to meet the market will experience more inspections, bidders, competition and ultimately a better result at auction.
“With all eyes on the real estate market watching how it will perform in the last quarter of 2022, we are expecting a solid finish to the year as we are consistently seeing increased supply being met with equal levels of demand.”
Ray White South Australia Chief Auctioneer John Morris said the second weekend of October saw many people celebrating Oktoberfest throughout Australia.
In the festival state, he said those that chose to continue believing in the auction process were also having great cause for celebration.
“The preliminary auction clearance rate is well into the 80th percentile here in South Australia, on the back of last week’s incredible 78 per cent.
“There’s six registered bidders per auction, and now is still a very strong time to go to auction in South Australia with 56 auctions scheduled this week,” Mr Morris said.
Ray White Queensland Chief Auctioneer Gavin Croft said there was no question that auction bidding was a reflection of the market in real time.
“Auction bidding provides vendors with genuine insights into the energy and pulse of the market.
“These observations that we see in the buyer behaviour and more particularly in the live market data that Ray White reports each week is imperative for decision making, for both agents and sellers,” Mr Croft said.
“No longer is there a linear line between a comparable sale made 60 or 90 days ago to today’s market.
“Holding onto a price of a past comparable sale made many months ago is actually detrimental.
“We’ve seen that cost sellers, particularly as each interest rate rise comes and impacts the market, whether we like it or not. It’s just a reality as it affects borrowing, and it affects our buyers’ behaviours.
“Today’s market is the only barometer for decisions and this is why the live data that we’re able to report each and every week is so important.
“For me this week there’s been a real change or real shift.
“Clearance rates this week have been the strongest personally for some 16 weeks, led by a big Gold Coast auction event that we had where we had clearance rates of 70 per cent or better.
“Sellers and buyers are finding a balance between where they see the markets individually and it’s been very pleasing to see.”