- Auction rates recovered last week after falling to the second-lowest level this year ahead of Easter.
- However, at 50.4%, the final combined capitals clearance rate was nothing to shout about.
- Auction volumes will increase in all capital city markets except Brisbane this week.
Australian auction rates recovered last week after falling to the second-lowest level this year ahead of Easter, although only just over half of those results reported ended in a sale.
According to CoreLogic, 50.4% of homes that went under the hammer across the capitals sold, rebounding modestly after falling to 43.9% in the previous week.
Reflecting the impact of school holidays, just 1,026 auctions took place, although that was higher than the 394 that were held before and during the Easter long weekend.
881 results were received by CoreLogic, equating to a reporting rate of 85.9%. It’s likely that most of those results that weren’t received were for properties that failed to clear.
Melbourne, at 53.6%, recorded the strongest clearance level of any capital, slightly ahead of Sydney at 52.4%. Clearance levels were below 50% in all other capital cities.
It was another soft performance, perhaps influenced by many Australians deciding to take the week off given the ANZAC Day public holiday on Thursday.
With school holidays coming to an end, auction volumes will lift in the week ahead. CoreLogic is currently tracking 1,384 across the capitals.
Reflecting how weak market conditions, seeing many homeowners choose to sell via private treaty or not all, 2,311 auctions took place in the same corresponding week a year earlier.
Melbourne, as is usually the case, will be the busiest individual market in terms of activity with 632 auction set to take place. Sydney will host 503.
Volumes will also lift across all other capital cities with the exception of Brisbane.
Data released by CoreLogic on Wednesday showed property price falls spread across the country during April, although the overall pace of price declines nationally continued to slow.
There has also been plenty of chatter about the potential for a RBA interest rate cut in the coming months, potentially as soon as next Tuesday. In the past, rate cuts have typically led to firmer housing prices.
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