Australian auction clearance rates continue to hover around 70%

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Neither hot enough to arouse concerns over a housing bubble nor cold enough to spurn concerns that prices will fall heavily in the near term.

That’s the succinct view offered by CoreLogic RP Data’s latest property market indicator summary which revealed Australian capital city auction clearance rates continued to hover around 70% last week.

According to the group, the national auction clearance rate fell to 68%, down marginally on the 68.9% level of a week earlier.

The group received results from 1,920 of the 2,419 auctions held, with 1,321 properties selling during the week. The group will release final auction clearance figures on Thursday this week.

Reflective of softer housing market conditions, clearance rates and the total number of properties up for auction were down on the levels of a year earlier.

As shown in the table below, supplied by CoreLogic RP Data, the strongest performances for the week came from the Sydney and Melbourne markets which recorded clearance rates of 75% and 70.8% respectively.

While they remain firmer than other capital cities, both figures were lower than the same corresponding week a year earlier.

Like clearance rates, the change in CoreLogic RP Data’s separate capital city home value index was negligible, coming in flat for the week.

Prices slipped in Sydney (-0.1%), Perth (-0.5%) and Adelaide (-0.1%) but rose modestly in Melbourne (+0.1%) and Brisbane (+0.2%).

The unchanged reading left prices up 1.6% for May, led by a hefty 3.2% increase in Sydney. Over the same period, prices rose in Melbourne (+1.8%) and Brisbane (+0.1%) but fell in Adelaide (-0.4%) and Perth (-3.0%).

Year to date house prices nationally have risen by 4.9% on average.

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