Preliminary auction clearance rates in Australia just fell to the lowest level of the year

(Quinn Rooney / Getty Images)
  • Weekly data from Corelogic showed Australia’s preliminary auction clearance rate fell to 55% last week.
  • It was the lowest level of the year, although CoreLogic said clearance rates have “levelled out somewhat” since May.

The number of successful auction sales in Australia slowed last week as more properties went to market.

Weekly data from CoreLogic revealed a preliminary clearance rate of 55% across the combined capitals, down from 59.1% in the week prior.

Preliminary clearance rates are typically revised lower, and last week’s interim total resulted in a finalised clearance rate of 55.3%.

“Given this week’s clearance rate is the lowest preliminary result seen so far this year, it will be interesting to see how this revises as final results are collected,” CoreLogic said.

The CoreLogic data was based on results received for 1,497 auctions from a total of 1,985 auctions held — a reporting rate of 75.4%.

The previous week’s reporting rate was only 72.3%, so along with higher volumes, the increase in the reporting rate could partly explain why preliminary numbers fell last week.

Here are last week’s results across the combined capitals:

CoreLogic

And as comparison, here are the preliminary clearance rates from the week prior:

“So far the Spring selling season has seen a lower volume of auctions take place each week relative to the same period last year, demonstrating the reluctance within a softening market,” CoreLogic said.

“However, the weighted average clearance rate has levelled out somewhat, remaining within the low-mid 50% range since May.”

For Australia’s two largest housing markets which are currently leading the downturn, the number of successful auctions fell by more than 5% from the week prior.

Melbourne recorded a preliminary clearance rate of 57.2% on 991 auctions, down from 62.4% the previous week on lower volumes of 894.

Sydney had a preliminary success rate of 52.6% on 665 auctions. The previous week had a prelimary clearance rate of 57.8%, although volumes were similar at 654.

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