Australia’s largest auction markets are 'continuing to run hot'

MELBOURNE, AUSTRALIA – JANUARY 14: Melburnians keep cool at Brighton Beach on January 14, 2014 in Melbourne, Australia. (Photo by Craig Sillitoe/Getty Images)

If the latest preliminary auction clearance rates from CoreLogic are anything to go by, there’s little evidence that Australian housing market conditions are cooling, especially in Sydney and Melbourne.

A preliminary nationwide clearance rate of 77.1% was achieved last week, up from the 76.2% preliminary reading in the prior week.

Following a familiar theme, Sydney and Melbourne — the largest and most expensive housing markets in the country — recorded the strongest performances with clearance levels of 81.1% and 79.9% respectively.

“Australia’s largest auction markets are continuing to run hot, with CoreLogic’s preliminary auction clearance rate nudging higher over the week, while the number of auctions held surged to the second highest weekly level over the year to date,” said CoreLogic.

In Sydney, it said that clearance rates ranged from as high as 91.3% in the Northern Beaches to as low as 63.8% in Parramatta.

For Melbourne, it said that the strongest performing sub-region was the North West with 91.7% of auctions clearing, followed by the Mornington Peninsula region at 88.1%.

The group said that clearance rates increased in all capitals with the exception of Brisbane and Perth, although this is subject to change as tardy, often unsuccessful auction results, are reported to the group.

This table from CoreLogic show how each individual market performed last week.

Source: CoreLogic

The group received 2,559 results from the 3,147 auctions held, with the final clearance rate for the week set to be released on Thursday.

In the prior week, a final clearance rate of 74.1% was reported, down from the preliminary reading of 76.2%.
Even with the likelihood that the final reading for this week will also be revised lower, there’s little disputing that conditions in Australia’s southeastern capitals remain hot.

It also suggests that few prospective buyers have not been put off by out-of-cycle rate increases by many of Australia’s largest mortgage lenders, along with increased chatter that tougher restrictions on investor lending could arrive imminently.

CoreLogic will release updated capital house price data for last week later in today’s session.

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