Auction volumes across the combined capital cities rose above 2,000 for the first time in 2019, marking the third week where the auction market recorded a rebound.
CoreLogic’s Property Market Indicator Summary showed that there were 2,303 homes taken to auction across the combined capital cities, returning a preliminary auction clearance rate of 54.1%. These figures are higher than the previous week’s auction volume of 1,450 and a clearance rate of 51.2%.
When compared to the number of auctions (3,313) and clearance rate (66.8%) during the same time last year, though, this week’s results are still down.
The past week’s final clearance rate also marked the second week in a row where the final clearance rate was above 50%— an improvement given the weekly auction clearance rate sat at or was below 42% for five consecutive weeks in November and December.
“It will be interesting to see how clearance rates hold up now that auction volumes have started to pick up. The seasonal pattern over previous years has seen a similar bounce back in the auction clearance rate in February through to mid-to-late March before trending lower into autumn and winter,” said CoreLogic in its report.
Considering that the advertised stock levels are still high and most other indicators are soft, it is likely that a similar weakening trend in auction markets will occur in the coming month.
Melbourne, one of the largest auction markets, recorded 1,144 auctions, with a preliminary clearance rate of 53. 1%— up from last week when the final clearance rate was recorded at 52.5% across 657 auctions but down from the same week in 2018, when 70.6% of the 1,606 auctions returning a successful result.
Sydney, meanwhile, reported that 795 homes in the city went under the hammer, with preliminary results showing a 58.6% clearance rate, up from 54.6% across 523 auctions last week.
Over the same week last year 1,259 homes were taken to auction across the city returning a clearance rate of 65.1%.
The report also revealed that the most expensive property bought over the week was a five-bed, four-bath, and one-car house in Mosman, NSW. This was sold for $4,125,000. The second-highest sale, meanwhile, was in Abbotsford, NSW: a four-bed, two-bath, and three-car unit that went for $4,015,000.
Brisbane was the city with the highest median “time on market” length among houses at 90 days this week. Perth came second (88 days), followed by Darwin (85 days).
