Australian capital city auction clearance rates have fallen to levels not seen in close to two years.
According to CoreLogic, a national clearance rate of 64.4% was recorded last week, down from 66.3% in the previous week.
It now sits at the lowest level since January 2016, driven by a sharp drop in Sydney’s clearance rate, as seen in the table below.
Only 61.3% of properties that went under the hammer sold last week, well below the 79.8% level reported in the same corresponding week one year ago.
“The last time Sydney has seen a clearance rate this low was late 2015/early 2016,” said CorelLogic.
The figure was also lower than the 66.3% level reported in the previous week.
Along with stalling price growth, this result all but confirms that Australia’s largest and most expensive housing market is slowing down.
Although not to the same scale seen in Sydney, Melbourne’s final clearance rate also declined, falling to 70.3% from 87% in the prior week. The dramatic drop reflects a sharp lift in the number of properties that were taken to auction following the AFL grand final held the Saturday before.
However, like Sydney, Melbourne’s clearance rate was also well below the 78.4% level reported in the same week a year ago.
Suggesting that the slowdown in Sydney and Melbourne’s housing markets may now be impacting other parts of the country, CoreLogic said that clearance rates fell across all capital cities during the week.
Turning to the week ahead, CoreLogic says that it is tracking just over 2,300 auctions across Australia’s capitals, similar to the levels seen in the previous week.
“Melbourne is expecting 1,122 auctions to be held this week, compared to 1,119 last week, while Sydney is set to see 850 homes go up for auction, up from 818 last week,” it says.
This map from CoreLogic shows how many auctions will be held in individual capital cities during the week.
As it often does, Melbourne once again dominates the list for the busiest suburbs for auctions activity during the week.
“CoreLogic is tracking 18 auctions in Reservoir, followed by Epping (17) and Glen Waverley (16),” the group says.