The preliminary clearance rate fell to its lowest rate of the year so far on the back of increased auction volumes this week.
CoreLogic reported the success rate is currently sitting at 69.4 per cent after 3362 properties went under the hammer across the combined capitals.
“This week’s auction activity was up 8.2 per cent from the 3108 auctions held the week prior, but down -12.4 per cent from the 3840 auctions held this time last year,” CoreLogic stated.
“Last year’s results coincided with last year’s Easter peak, while auction activity is likely to continue to trend upwards as the Easter break approaches.”
This week’s preliminary clearance rate is down marginally on last week when an initial success rate of 69.8 per cent was reported.
This then revised down to 66.9 per cent at final figures.
This time last year, 83.1 per cent of reported auctions were successful.
Melbourne enjoyed its busiest auction week of the year to date, with 1606 homes taken to auction across the city this week.
Compared to the previous week when 1525 properties were taken to auction, this week’s auction volumes are up 5.3 per cent.
They are also 2 per cent higher than the previous busiest week of the year, when 1574 auctions occurred in the week ending 27 February.
However, despite the high volumes, Melbourne’s preliminary clearance rate rose this week, with 69.7 per cent of the 1360 results collected so far recording a successful result.
Last week, a preliminary clearance rate of 68.9 per cent was recorded, which revised down to 65.9 per cent at final figures.
This time last year 81 per cent of the 1929 auctions held were successful.
Across Sydney, 1100 auctions were held across the city this week, overtaking the week prior, when 1029 auctions were held, as Sydney’s second busiest week of the year to date.
Up 6.9 per cent from the previous week, the increase in auction activity saw Sydney’s preliminary clearance rate fall 1.6 percentage points to 68.1 per cent with 914 results collected so far.
The previous week saw a preliminary clearance rate of 69.7 per cent which revised down to 64.8 per cent at final figures.
This time last year, 87.6 per cent of the 1410 auctions held recorded a successful result.
The smaller capitals
Across the smaller capitals auction, activity was up 18.4 per cent week-on-week, and up 30.9 per cent compared to this time last year, with both Adelaide and Brisbane recording their busiest week of the year so far.
Brisbane was the busiest auction market amongst the smaller capitals, with 243 homes taken to auction this week, followed by Adelaide (230) and Canberra (162).
Following the same pattern as auction activity, Brisbane recorded the highest preliminary clearance rate (73.3 per cent) up 12 percentage points from the previous week’s preliminary results, followed by Adelaide (70.9 per cent), and Canberra (70.1 per cent).
Nine of the 16 auction results recorded so far in Perth were successful, while the one auction held across Tasmania was successful.
Domain has reported a preliminary clearance rate of 68.8 per cent after tracking 2686 auctions across the major capitals.
So far, results are in for 1866 of those auctions, with 1283 properties selling (to the value of $1176.5 million) while 296 properties were withdrawn.
Last week, the final clearance rate settled at 66.7 per cent after 2478 auctions were held.
Results were provided for 2141 of those auctions, with 1429 properties selling (to the value of $1255.6 million) while 267 properties were withdrawn.
This time last year, the clearance rate was 80 per cent after 3070 properties were taken to auction.
Results were provided for 2984 of those auctions, with 2387 properties selling (to the value of $3323 million), while 224 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 68.2 per cent this week after 950 properties were taken to auction.
So far, results have been provided for 623 of those auctions, with 425 properties selling (to the value of $449.1 million), while 148 properties were withdrawn.
Last week, Sydney’s final clearance rate was 64.8 per cent after 867 properties were taken to auction.
Results were provided for 714 of those auctions, with 463 properties selling (to the value of $505 million), while 124 properties were withdrawn.
This time last year, Sydney’s clearance rate was 84.3 per cent after 1199 properties were taken to auction.
Results were provided for 1162 of those auctions, with 979 properties selling (to the value of $1707 million), while 114 properties were withdrawn.
Melbourne’s preliminary clearance rate is 69.6 per cent this week after 1353 properties were taken to auction.
So far, results are in for 1026 of those auctions, with 714 properties selling (to the value of $610.8 million), while 114 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 65.4 per cent after 1292 properties were taken to auction.
Results were provided for 1152 of those auctions, with 753 properties selling (to the value of $596.5 million), while 119 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 77.8 per cent after 1586 properties were taken to auction.
Results were provided for 1536 of those auctions, with 1195 properties selling (to the value of $1423.8 per cent), while 96 properties were withdrawn.
Ray White results
The Ray White Group has reported auction activity remains up across the board and the housing market is still functioning at a high level, with sellers taking advantage of continued buyer demand.
They noted the group had 831 auctions booked this week, an increase of 44 per cent on last year.
“This is the largest auction week in 2022 so far and the first week above 800 for the year,” they said.
With 483 of those on Saturday alone, the group reported a healthy preliminary clearance rate of 80 per cent. Adelaide was the standout city achieving a 89 clearance rate.
Buyers have more choice to choose from when buying their property but Ray White data shows there’s still good competition with 4.6 registered bidders on average.
“A trend appears to be forming in vendors opting to sell prior, accepting strong offers from buyers wanting to avoid the auction day nerves,” they said.
“However, those who proceeded all the way through to auction day were rewarded, achieving on average 12 per cent more than the highest offer prior.”
They noted the Ray White economics team would be carefully watching the potential property outcomes from Tuesday night’s federal budget.
“There is a lot of good news – we are coming out of the pandemic and our economy is in growth mode,” Ray White Chief Economist Nerida Conisbee said.
“The bad news is that the pandemic has left us with surging inflation, increased likelihood of interest rate rises and a national debt level approaching one trillion dollars. Added to this is that 2022 is an election year – this means the budget will need to balance keeping voters happy without overspending.”
New South Wales
Ray White New South Wales Chief Auctioneer Alex Pattaro labelled the Sydney auction market as “steady”.
“Auction volume is higher than it was this time last year, making it a great time to transact.
“With an average of four registered bidders, which appears to be the new normal, sellers can take confidence that the buyers who are attending auctions are looking to secure a deal.
“Properties that are priced correctly attract competition and are still selling exceptionally well.”
With more than 260 auctions scheduled across the Ray White group in Victoria this week, the property market continues its strong run.
Ray White Victoria and Tasmania CEO Stephen Dullens said the stellar results continued to be achieved right across the board.
“We’re seeing another strong week of auction results. Our preliminary clearance rate currently sits at 80 per cent. We continue to see strong demand and large crowds at auctions, with buyers out in force.”
Data across Ray White Victoria shows new listings are trending in line with the high levels of last year, despite the significant increase in listing numbers from October to December 2021.
“At the end of last year, we saw our strongest period of new listings coming to market on record,” Mr Dullens said.
“This strength in new listings has continued into the first quarter of 2022, yet we continue to see strong results achieved.
“This shows once again the strong demand that still exists across the Victorian property market.”
Ray White Queensland Chief Auctioneer Gavin Croft said throughout the week, he saw a slight softening of the local clearance rates.
“We had been hovering around the 75 per cent for a while now, and it dropped just below 70 per cent this week, with the gap between seller and buyer expectations starting to show,” Mr Croft said.
“However, bidder numbers are still very strong at an average of five registered bidders.
“Affordable markets such as Coopers Plains and Durack, are performing incredibly well.
“This week we have seen a 20 per cent increase in auction volumes for Brisbane.”
Ray White South Australia Chief Auctioneer John Morris was in isolation with a bout of COVID-19 but it didn’t stop the great results and huge bidder numbers from rolling on in Adelaide.
“Adelaide is not only the most livable city in Australia, but it is quickly becoming the auction capital of Australia,” Mr Morris said.
“So far this year we have seen an 82 per cent clearance rate, 8.7 bidder registrations at auctions and active bidding at 96 per cent of all auctions.”