After declining last week, auction activity is back on the rise
After experiencing a decline of 11.5% last week, auction activity in the combined capitals has returned to an upward trend, with 1,911 homes being auctioned this week, according to new data from CoreLogic.
In comparison, the previous week saw 1,746 homes go under the hammer, and during the same period last year, there was a 15.7% decrease in the number of homes auctioned, with only 1,611 properties on the market.
The preliminary clearance rate for the combined capitals has shown a gradual increase for the second consecutive week, with 71.3% of the 1,450 results collected so far indicating a successful outcome, CoreLogic reported. Last week's preliminary clearance rate was slightly lower at 71.0% (later revised to 64.5% in the final figures), while this time last year, only 56.0% of auctions resulted in a successful sale.
In Sydney, there were 772 homes put up for auction this week, marking an 11.6% increase from the 692 homes auctioned last week. Of the 589 results collected so far, 75% have yielded successful sales. This week's preliminary clearance rate is the highest Sydney has seen in the past five weeks, according to CoreLogic.
Additionally, the withdrawal rate decreased to 11.4%, and the proportion of properties passed in at auction also decreased to 13.6%. In comparison, last week's preliminary clearance rate stood at 69.1% (later revised to 63.4% in the final numbers), marking Sydney's lowest preliminary rate since mid-February (67.4%), CoreLogic reported. Around the same time last year, 615 homes were taken to auction, resulting in a final clearance rate of 54.7%.
Read next: What city remains affordable despite record house price drops?
Melbourne witnessed 842 homes being auctioned this week, showing a 9.1% increase from the 772 homes auctioned in the previous week and a 31.6% rise from the number seen during the same period last year (640).
However, Melbourne's preliminary clearance rate fell below the 70% threshold for the third time in four weeks, with 69.5% of the 659 results collected so far indicating successful sales. Last week, the preliminary clearance rate was 71.9% (later revised to 65.0% in the final figures), while this time last year, 58.8% of auctions resulted in successful sales, CoreLogic reported.
As the weeks progress, the number of auctions is expected to increase, accompanied by a rise in the volume of property listings. Currently, over 2,000 capital city auctions are scheduled for next week, CoreLogic reported.
Have something to say about this story? Let us know in the comments below.
