Fewer Australian properties sold at auction last week due to falls in Sydney and Melbourne

Sean Gallup/Getty ImagesAustralian auction markets remain cold.
  • Australian auction clearance rates fell last week on the back of weaker results in Sydney and Melbourne.
  • The combined capitals clearance rate fell to 55.6% from 57%, coinciding with an increase in properties going under the hammer.
  • Auction volumes look set to fall sharply this weekend, an outcome that could support clearance levels.

Australian auction clearance rates fell last week on the back of weaker results in Sydney and Melbourne.

According to CoreLogic, the combined capitals clearance rate fell to 55.6% from 57% a week earlier, coinciding with an increase in the number of properties that went under the hammer, lifting to 1,536 from 1,257.

As has been the case for some time now, and fitting with ongoing price declines seen in Sydney and Melbourne, in particular, the result was well below the 68.7% clearance rate achieved in the same corresponding week a year ago.

CoreLogic

From a week earlier, Melbourne’s clearance rate fell to 58.5% from 59.9%. A total 802 auctions took place in the city, up from 613 in the prior week.

The number of auctions in Sydney also rose, increasing from 407 to 469, seeing the city’s clearance rate fall from 55.2% to 52.4%.

One year ago, Melbourne and Sydney recorded clearance rates of 75.6% and 65.4% respectively. The decline suggests a widening mismatch in buyer and vendor price expectations, and helps to explain why an increasing number of forecasters believe prices will continue to fall in the months ahead.

CoreLogic

Across the smaller capital city markets, clearance rates improved in Canberra and Perth but fell in Brisbane and Adelaide. None were held in Tasmania, currently Australia’s hottest capital city housing market in terms of annual price growth.

In what may help to support clearance rates this weekend, auction volumes will drop sharply compared to last week.

CoreLogic is currently tracking 1,224 across the capitals. Melbourne, as usual, will remain the busiest capital city market with 576 auctions scheduled. Sydney will also host 428 during the week.

Volumes will also decline in all other capitals except for Canberra and Hobart.

NOW READ: Australian home prices have fallen for 10 months, but this economist warns the worst is yet to come

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.