Sydney auction clearance rates rebound as fewer homes are taken to market

(Kai Schwoerer / Getty Images)
  • Auction clearance rates picked up last week as total volumes declined by 11.5%.
  • The Sydney market outperformed Melbourne, with a preliminary success rate of 66.9%.
  • Despite the weekly improvement, CoreLogic said that overall auction clearance rates are still in a downward trend.

Preliminary auction clearance rates in Australia picked up last week as the total number of auctions declined.

Weekly auction data from CoreLogic showed 2,280 auctions were held over the weekend — down 11.5% from the previous week when 2,577 auctions were held.

The lower volume helped drive an improvement in clearance rates, with 63.5% of auctions successful across Australia’s combined capital cities. That was up from the prior week when clearance rates dipped to their lowest level of 2018.

Notably, clearance rates in Sydney picked up from last week’s fall below 60%.

“774 auctions were held this week with 66.9% selling, increasing on last week when only 55.8% of auctions were successful across a slightly higher 829 auctions,” CoreLogic said.

The result saw Sydney’s auction market outperform Melbourne which had a clearance rate of 63.5% across 1,137 auctions.

The clearance rate in Melbourne was lower than last week’s reading of 65.5%, even though the number of auctions held fell by almost 200.

CoreLogic said that more broadly, clearance rates have picked up from their December lows but current remain in a downward trend.

“Although the preliminary clearance rate has shown a positive rise over the week, the trend in auction clearance rates — based on the more complete final results — clearly shows a downwards trend in clearance rates,” Corelogic said.

As has often been the case this year, auction clearance rates for units last week were higher than houses.

Unit auctions returned a clearance rate of 67.7% across both metro and regional areas, while the clearance rate for houses was only 61.7%.

“A similar trend is evident in CoreLogic indices which show the unit market outperforming house values as housing demand slides towards the more affordable segments of the market,” CoreLogic said.

Weekly house price data will be released by CoreLogic later this morning.

It follows monthly figures for April last week which showed Australian home prices fell for the seventh straight month in combined weighted average terms.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.