Australian auction clearance rates have fallen to the lowest level in more than two years, driven lower by Sydney and Melbourne where more than 40% of properties taken to auction last week failed to sell.
Given the reasonable relationship that exists between clearance rates and annual movements in home prices, it suggests recent weakness in Australia’s largest capital cities may continue for some time yet.
As the largest store of household wealth for many Australian families, and therefore highly influential on the broader Australian economy, there’s likely to be plenty of interest in upcoming housing market data, potentially even more than usual.
And that includes the performance of auction markets this weekend.
Following the usual pattern seen as we approach winter, auction volumes are now starting to decline, limiting supply for potential buyers.
According to CoreLogic, there are currently 1,931 properties across the capitals set to go under the hammer, down from 2,279 one week ago.
Melbourne has 948 auctions scheduled, down from 1,099 last week, while Sydney will also see lower volumes, falling from 787 to 637. Brisbane and Canberra also have lower stock on offer, falling to 123 and 76 respectively.
Adelaide and Perth buck the trend with 102 and 43 auctions scheduled respectively, up from 97 and 40 one week ago.
For comparison purposes, a combined capitals clearance rate of 73.1% was achieved one year ago as 2,824 properties went up for sale.
CoreLogic will release preliminary results for the week on Sunday.