- Australian auction clearance rates fell last week despite fewer properties going under the hammer.
- All capitals recorded weaker results from the previous week.
- Less than half of all Sydney auctions resulted in a sale.
Less than half of all Sydney properties taken to auction sold last week, dragging national clearance rates back towards the multi-year lows seen earlier in June.
According to CoreLogic, a final clearance rate of 52.6% was achieved across Australia’s capitals, easing from 55.5% in the prior week despite a reduction in stock on offer.
1,671 properties went under the hammer, down from 1,849 a week earlier.
Auction activity follows a seasonal pattern, lifting in autumn and spring but falling in winter and summer.
“The weighted average clearance rate has tracked below 60% for eight consecutive weeks now, while over the same eight week period last year clearance rates were tracking within the low 70 to high 60% range,” CoreLogic said.
In the same corresponding week in 2017, a combined capitals clearance rate of 67.3% was achieved.
CoreLogic said clearance rates fell in both Melbourne and Sydney during the week.
57.2% of properties in Melbourne cleared, down from 59.9% a week earlier. Volumes fell from 941 to 791 over this period.
Sydney’s clearance rate continued to languish near multi-year lows, falling to 49.7% from 50.1% in the prior week. Unlike Melbourne, auction volumes were steady week-on-week.
Despite remaining around levels not seen since 2012 — a period when median prices were falling — the recent stability in Sydney clearance rates has seen some speculate that recent price declines will begin to slow in the second half of the year.
Sydney’s median price fell 4.5% in the 2017/18 financial year, including 0.3% in June.
Mirroring the theme seen in the largest auction markets, clearance rates fell across the smaller capitals despite a reduction in homes going under the hammer.
With school holidays either under way or set to begin across the country, auction volumes look set to fall sharply in the week ahead.
CoreLogic is currently tracking 1,323 across the capitals with volumes looking set to fall in all markets except for Canberra and Hobart.
Melbourne will remain the busiest market with 594 homes up for sale. Sydney will also host 521 auctions during the week.
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