Auction clearance rates in Sydney rebounded last week after falling to a near two-year low in late October.
According to CoreLogic, Australia’s largest and most expensive housing market recorded a preliminary clearance rate of 67.4% in early November, a noticeable improvement from the 64.1% preliminary level reported one week earlier.
“There were 1,217 homes taken to auction this week, virtually unchanged from last week’s 1,215,” CoreLogic said.
“Performance across Sydney’s individual sub regions was mixed this week with Baulkham Hills and Hawkesbury recording a clearance rate of 78.8% across 41 auctions, while the Outer South West region of Sydney recorded a much lower clearance rate of 33.3% across 18 auctions.”
While Sydney’s figure will almost certainly be revised lower when CoreLogic releases final clearance rates for the week on Thursday, the bounce in the preliminary figure suggests it’s unlikely to be as low as the 58.3% level seen in the last week of October.
Despite the bounce in Sydney’s clearance rate and a noticeable decline in the number of properties that went under the hammer, the national preliminary figure was still lower than the prior week, falling to 66.8% from 67.8%.
Across the capitals, preliminary clearance rates rose in Melbourne and Hobart, offset by weaker results in all other centres.
Here’s how they fared last week.
And here’s they fared one week earlier.
Helping to explain the strength in Melbourne’s figure, CoreLogic said the number of properties that went to auction fell sharply due to the Melbourne Cup long weekend.
“The lower volumes a likely result of the upcoming Melbourne cup festivities and coming off the back of the busiest week for auctions ever recorded for the city last week,” it said.
Given the tendency for preliminary data to be revised lower, it suggests the final national clearance rate may come in below the 64.5% level reported in the final week of October.
Following the release of last week’s auction results, CoreLogic will release separate data on house price movements across Australia’s five mainland state capitals later today.
According to the group’s Home Value Index, prices nationally were unchanged in October with a 0.5% decline in Sydney offset by a similarly-sized gain in Melbourne.