This week proved the busiest auction week since the pre-Easter spike, with 3229 properties going under the hammer across the combined capitals to record a preliminary clearance rate of 63.7 per cent.
The volume was also an 11.2 per cent increase on the same week last year when 2905 auctions were held.
“After trending downwards for five consecutive weeks, the combined capitals preliminary clearance rate rose 80 basis points this week, with 63.7 per cent of the 2528 results collected so far returning a successful result,” CoreLogic said.
“Last week’s preliminary clearance rate of 62.9 per cent was revised to 61.3 per cent at final figures, while this time last year 73.5 per cent of auctions held were successful.”
With 1460 auctions held across the city, Melbourne’s auction activity rose 105.1 per cent this week, equating to more than double the 712 auctions held the week prior.
“With 1220 results collected so far, Melbourne’s preliminary clearance rate rose one percentage point from 61.9 per cent last week to 62.9 per cent this week,” CoreLogic reported.
“Last week’s preliminary rate was revised up to 62.2 per cent at final figures.”
This time last year 71.7 per cent of the 1246 auctions held in Melbourne were successful.
Sydney’s auction activity surged this week, with 1119 auctions taking place across the harbour city.
This marked the first time in seven weeks that Sydney’s volume exceeded 1000, and it was also more than double the 532 auctions held the week prior, but down 4.7 per cent from the 1174 auctions held this time last year.
“After reaching a low of 58.7 per cent in early May, Sydney’s preliminary clearance rate continued to trend upwards for the third consecutive week, with 62.8 per cent of the 869 results collected so far returning a successful result,” CoreLogic stated.
Last week’s preliminary clearance rate of 61.7 per cent revised down to 58.4 per cent at final figures, while this time last year 76 per cent of auctions held recorded a successful result.
The smaller capitals
Auction activity rose 51.9 per cent across the smaller capitals this week with 650 auctions held.
Brisbane overtook Adelaide as the busiest market of the smaller capitals, with 252 homes taken to auction this week, followed by Adelaide (224) and Canberra (149).
Adelaide recorded the strongest preliminary clearance rate, up 11.4 percentage points from the week prior (68 per cent) with 79.4 per cent of auctions held recording a successful result.
This was followed by Canberra (73.5 per cent) and Brisbane (55.1 per cent) which both recorded a fall in preliminary clearance rates.
In Perth, eight of the 15 auction results collected so far were successful while neither of the two results collected in Tasmania were successful.
Domain has reported a preliminary clearance rate of 63.7 per cent after tracking 2708 auctions across the major capitals.
So far, results are in for 1826 of those auctions, with 1163 properties selling (to the value of $984.3 million), while 287 properties were withdrawn.
Last week, the final clearance rate settled at 59.4 per cent after 1140 properties were taken to auction.
Results were provided for 941 of those auctions, with 559 properties selling (to the value of $475.3 million), while 110 properties were withdrawn.
This time last year, Domain’s national clearance rate was 72.2 per cent after 2455 auctions took place.
Results were provided for 2178 of those auctions, with 1572 properties selling (to the value of $2149 million), while 309 properties were withdrawn.
Domain’s preliminary clearance rate for Sydney is currently sitting at 62.8 per cent after 1013 auctions took place across the harbour city this weekend.
So far, results are in for 637 of those auctions, with 400 properties selling (to the value of $422.1 million), while 154 properties were withdrawn.
Last week, Sydney’s final clearance rate was 59.3 per cent after 337 auctions took place on the weekend of the Federal Election.
Results were provided for 263 of those auctions, with 156 properties selling (to the value of $170.1 million), while 51 properties were withdrawn.
This time last year the harbour city was host to 967 auctions, resulting in a final clearance rate of 73.4 per cent.
Results were provided for 929 of those auctions, with 682 properties selling (to the value of $1207 million), while 97 properties were withdrawn.
This week Melbourne was host to 1320 property auctions, resulting in a preliminary clearance rate of 63.7 per cent.
So far, results are in for 950 of those auctions, with 605 properties selling (to the value of $452.8 million), while 110 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 57.7 per cent after 595 properties were taken to auction.
Results were provided for 497 of those auctions with 287 properties selling (to the value of $230.5 million), while 46 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 71.3 per cent after 1240 properties were taken to auction.
Results were provided for 1006 of those auctions, with 717 properties selling (to the value of $767.2 million), while 201 properties were withdrawn.
Ray White results
The Ray White Group noted temperatures might have dropped but buyer activity remained steady as the final weekend in May saw auction sentiment rebound after the Federal Election.
They noted many agents reported stronger buyer sentiment on Saturday, with the group returning a 73 per cent national clearance rate, with 4.5 registered bidders on average attending Ray White auctions across the country and 2.9 average active bidders.
“This is still historically high on pre-pandemic numbers and as we head into winter, cooler days traditionally mean a cooler market,” the group reflected.
“Proving the auction method is still the best way to go, even in today’s market, sellers who held out and sold at auction this week made almost 12 per cent more on average than if they’d sold prior.”
The group continued listings fell by 10 per cent in April meaning May began on the leaner side.
“The lack of new stock on the market created a challenge for buyers to find quality property, meaning highly desirable properties were still well sought after.
“Heading into June, listing authorities (properties listed but yet to go live) are still down but only by just over two per cent compared to last year, pointing to a bit more choice for buyers next month.”
Ray White New South Wales chief auctioneer Alex Pattaro said the current auction data would suggest this is the new normal.
“Clearance rates inside the 60 per cent band and an average registered bidder count of roughly four people per auction is still positive sign for sellers,” he said.
“The bidders that are attending auctions now are ready to make decisions and the sellers within the marketplace need to remember that the prices we are obtaining at auction are substantially higher than they were 18 months ago.”
Ray White Victoria and Tasmania CEO Stephen Dullens said with the election distraction now behind us, activity in the market saw a sharp increase.
“We know that whenever there is a federal or state election, customers watch with interest and activity in the market slows,” he said.
“With over 220 Ray White auctions scheduled across Victoria this week, prospective buyers have wasted no time getting back to auctions and open homes in search of their next property purchase.
“Preliminary results so far this week show in excess of three active bidders per auction – the highest level since before the election campaign commenced.
“With close to 200 auctions scheduled across Victoria next week, we continue to see strong activity and strong demand right across the market.”
Ray White Queensland chief auctioneer Gavin Croft said Saturday proved a mixed day in the river city.
“At some auctions, you’ve got this incredible strength that really drives behaviour and bidding, then at others you can see the market transitioning,” he said.
“To say buyer behaviour over the last four weeks or so hasn’t changed would be incorrect.
“I think we’re seeing buyers a little bit more measured in their approach in some regions and it was certainly on show today.”
As we enter the final weekend of auctions for autumn, Ray White South Australia chief auctioneer John Morris said the weather may be cooling off but the results were still simmering along impressively.
“Last week, CoreLogic reported a 70 per cent clearance throughout the state while our members reported 87 per cent, which is staggering for the same metric,” he said.
“This is made even more impressive by the fact that we called 31.2 per cent of all auctions throughout South Australia, three times that of our nearest competitors.
“This proves yet again, if you want the job done and you want great results at auction, make sure there’s a yellow sign outside your front door.”