Buyers are continuously turning away from the auction market, according to the latest CoreLogic Property Market Indicator Summary, which revealed that the auction clearance rate once again hit the lowest levels over the week ending November 11.
A total of 2,384 homes went under the hammer across the combined capital cities this week, returning a preliminary auction clearance rate of 46.8% during the week. This was higher compared to the previous week’s final clearance rate of 42.7%, the lowest reading since June 2012.
However, relative to other preliminary results recorded in the past, this week’s figure is the lowest rating recorded yet. In addition, it was noted that as final results are collected, it could further drop to the low 40% range.
The weighted average clearance rate has been trailing below 50% for seven consecutive weeks now, and this trend was observed to be a result of weakening conditions across the two largest auction markets Melbourne and Sydney. These two cities have covered 83% of all auctions held so far this year.
Looking into their respective performances this week, it was found that 1,141 auctions were held in Melbourne. This generated a preliminary clearance rate of 48.3%, up from last week’s 45.7% final result when only 266 auctions were logged.
On the other hand, Sydney saw 48.4% of its auctioned homes successfully bought. For reference, the city’s final auction clearance rate the past week was 42.6%, marking the lowest result since December 2008. Volumes bucked the trend after 830 auctions were held in the city, up from 813 the past week.
Adelaide posted the highest preliminary auction clearance rate of 47.5 %, while in Perth, only 20% of auctions cleared.
The report also revealed it that the most expensive property bought over the week was a five-bed, four-bath, and two-car house in Vaucluse, New South Wales (NSW) which sold for $8,800,000. The second-highest sale, meanwhile, was in Elizabeth Bay, NSW: a four-bed, three-bath, and three-car unit that went for $8,250,000.
Darwin was the city with the highest median “time on market” length among houses at 81 days this week. Perth came second (77 days), followed by Brisbane (63 days). The same rankings were observed in terms of units: Darwin (105 days), Perth (77 days), and Brisbane (76 days).
