The preliminary clearance rate continues to fall after auction volume rose 38% this week to see 2,847 homes put up for auction in the capitals combined.
CoreLogic reports that it was the busiest auction week since the peak of the pre-Easter season, but remains 2% lower than auction volume held at this time last year.
As seen throughout the past month, the preliminary clearance rate continues to decline.
This week it fell for the fourth consecutive week, 10 basis points lower than last week at 64.6%, with 2,228 results collected so far.
“This week’s preliminary clearance rate tops the previous week (64.7%) as the lowest preliminary clearance rate of the year to date,” CoreLogic said.
Last week’s rate was revised down to 61.8% according to the final figures, while at the same time last year, 77% of the auctions held were successful.
In Melbourne, 1,268 homes went under the hammer this week – up 40.1% from the previous week (905) but down 5.7% from the same period last year (1,345 ).
Of the 1,044 results collected so far, 64% have returned a positive result, down 60 basis points from last week’s preliminary clearance rate (64.6%), which was revised to 59, 8% to final figures.
In the same week last year, 75.4% of auctions held in Melbourne were successful.
Across Sydney, 934 auctions took place this week. This was a 41.7% increase from the previous week, when 659 auctions took place.
With 738 results collected so far, Sydney was among only two capitals to see an increase in its preliminary resolution rate, with 61.1% of actions held yielding a positive result.
This week’s rate is up 2.4 percentage points from the previous week, when a preliminary rate of 58.7% was recorded. This success rate has been revised downwards to 55.3% according to the final figures.
“Despite the increase in the preliminary clearance rate, Sydney’s withdrawal rate remains high, with 22.1% of this week’s auctions withdrawn from the market,” CoreLogic noted.
“At this time last year, 78.9% of the 1,150 auctions held across Sydney were successful.”
The small capitals
In small caps, Adelaide continues to record both the highest preliminary clearance rate and the busiest auction week, with 263 auctions returning a preliminary clearance rate of 78.8%.
Canberra was among only two capitals to record an increase in its preliminary clearance rate (76%) up one percentage point from the previous week (75%) with 127 bids.
Brisbane’s preliminary clearance rate fell by 2.3 percentage points, with 60.3% of the 235 auctions held yielding a positive result.
In Perth, six of the nine results collected so far have been successful, while results from three of the four auctions held in Tasmania have been collected so far. None succeeded.
Domain reported a preliminary clearance rate of 62.1% after tracking 2,372 auctions in major capitals.
So far, results are known for 1,624 of these auctions, with 1,008 properties sold (worth $877.1 million), while 278 properties have been withdrawn.
Last week the final clearance rate was 58.1% after 1,679 properties went up for auction.
Results were provided for 1,395 of these auctions, with 811 properties sold (worth $694.9 million), while 189 properties withdrew.
At this time last year, the clearance rate was 74.3% after 2,371 properties went up for auction.
Results were provided for 2,270 of these auctions, with 1,687 properties sold (worth $2,460.5 million), while 229 properties withdrew.
Sydney’s preliminary clearance rate was 57.3% this week after 810 properties went up for auction.
So far, results have been provided for 543 of these auctions, with 311 properties sold (worth $331.8 million), while 165 properties have been withdrawn.
Last week, Sydney’s final clearance rate stood at 53.1% after 579 properties went up for auction.
Results were provided for 478 of those auctions, with 254 properties sold (worth $266.8 million), while 111 properties withdrew.
This time last year, Sydney’s clearance rate was 77.1% after 969 properties went up for auction.
Results were provided for 935 of these auctions, with 721 properties sold (worth $1351.1 million), while 81 properties were withdrawn.
Melbourne had 1,165 properties up for auction this week, resulting in a preliminary clearance rate of 62.3%.
So far, results are known for 853 of those auctions, with 531 properties sold (worth $431.9 million), while 93 properties have been withdrawn.
Last week Melbourne’s final clearance rate was 55.9 per cent after 767 properties went up for auction.
Results were provided for 662 of those auctions, with 370 properties sold (worth $291.5 million), while 58 properties were withdrawn.
At this time last year. Melbourne’s clearance rate was 72.4% after auctioning 1,154 properties.
Results were provided for 1,086 of those auctions, with 786 properties sold (worth $953.9 million), while 130 properties withdrew.
Ray White Results
The Ray White Group reported a busy weekend for auctions, with buyers in force the last weekend before the election.
The group held 299 auctions on Saturday, recording a 70% preliminary clearance rate across the country.
Ray White’s chief economist, Nerida Conisbee, said a new cycle was now evident.
“Our best measure of demand is the number of people actively bidding at auctions. If you’re ready to bid on a property, it follows that you’re ready to buy,” Ms Conisbee said.
“Since we started tracking auction activity in July 2018, we’ve seen an average of 2.7 bidders per auction (based on 47,816 auctions during this period).
“The lowest number was seen at the end of 2018, when we saw a significant slowdown in investor activity. The highest was reached in September 2021, the absolute peak of the pandemic-induced boom.
“Average active bidders have come down from the top. In April, the average was 2.9. It was still above the long-term average, but has fallen markedly from the September high.
“It is also lower than what was recorded in April 2021 but much higher than in April 2019 and April 2020.
“As for how this figure develops over the next few months, it will depend on the extent of the rise in interest rates, however, the winter slowdown is also to be taken into account.”
Ray White averaged 4.1 registered bidders across the country on Saturday and 2.6 of those were active bidders.
Alex Pattaro, chief auctioneer for Ray White NSW, said Sydney continued to see top-tier homes selling under the hammer at bargain prices.
“This remains a strong time to trade in the market compared to the same dates in 2019,” Mr. Pattaro said.
“Prices are still high and lending remains at low levels. Despite the increase in the number of homes passing through, we are seeing homes trading relatively quickly after the auction. »
With many buyers and sellers trying to get in ahead of election weekend, it was another busy week for auctions across Victoria.
Ray White Victoria and Tasmania CEO Stephen Dullens said that despite the disruptions the market remained very active.
“We know that during election campaigns bidding slows down a bit – so it’s a busy weekend before voters head to the polls next Saturday,” Dullens said.
“We have over 200 auctions scheduled in Victoria this week, slightly ahead of the same time last year.”
Despite the interrupted month of April and the distraction of the election campaign, solid results continued to be achieved.
“At the end of last year, we saw our strongest period of new market listings ever, which was in the first quarter of 2022.
“With more properties available for sale and greater choice for buyers, strong results continue to be delivered, showing once again the strong demand that still exists in the Victorian property market.”
Rain couldn’t stop Ray White’s auction success on Saturday, with crowds sheltering inside as properties went under the hammer.
“Although the depth and spirit of the auctions is not what it was a few weeks ago, it has been such a positive day in the Brisbane market,” said Gavin Croft, Chief Auctioneer at Ray White QLD.
“We’ve had some really positive results which Ray White continues to deliver.
“Despite the rain, those genuine buyers were definitely out today, no doubt.”
John Morris, chief auctioneer of Ray White South Australia, said the memo released on the fall in the property market fell on deaf ears for Adelaide residents.
“We reported an 88.1% clearance for Ray White’s auction last week. There were seven registered bidders on average per auction, including 3.4 participants,” he said.
“While that was down slightly this week to 6.1, active auctions remained exactly the same at 3.4.
“The 63 auctions we have scheduled this week represent 40% of the entire market, proving that Ray White is once again dominating the auction space in South Australia.
“The change in weather doesn’t seem to be stopping people from going out, and neither do the rumors of a changing market.
“A lot of properties are selling, a lot of bidders are showing up, and it still looks like a positive outlook for those of us in South Australia.”