This article is from the Australian Property Journal archive
AUCTION clearance rates across the capitals recorded their lowest preliminary result of the year over the weekend, with spring selling season officially over as stock levels continue to outpace purchasing activity.
The preliminary combined capital auction clearance rate came in at 62.4% last week – down a full percentage point from the week prior – according to CoreLogic.
“The weak outcome for auction markets reflects weaker selling conditions as advertised stock levels rise without a commensurate lift in purchasing activity,” CoreLogic research analyst, Caitlin Fono said.
Auction volumes are winding down, with the 2,597 homes taken to auction last week a drop from the 2,881 a week earlier and well below the spring peak of 3,135 auctions held over the week ending October 27th.
This coming week is set to show a further reduction, with around 2,200 homes currently scheduled for auction, falling again to around 800 next week ahead of the market all but shutting down for the summer break.
There were 1,207 auctions held in Melbourne last week, with 67.0% recording a positive outcome, the highest preliminary result since the last week of October (68.5%).
In Sydney, 923 homes went under the hammer, down from 1,031 the week prior for a preliminary clearance rate of 57.5% which was the lowest of the year so far and down nearly eight percentage points from the week prior (65.1%, which was revised down to 58.2% on final numbers).
Brisbane hosted the most auctions across the smaller capitals with 203. Only 57.6% of auctions have been reported as successful so far, albeit up from 52.9% the previous week (which was revised down to 48.6% on final numbers).
Adelaide saw 167 auctions, roughly on par with the week prior, returning an early clearance rate of 61.7% – its lowest of the year so far.
Only 78 auctions were held in the ACT, the lowest volume in two months, returning a preliminary clearance rate of 60.8%.
Sixteen auctions were held in Perth , with three of the four auctions collected so far reporting a successful result. There were three homes auctioned in Tasmania, one of which was successful.
Sluggish auction results to close out 2024 come as Australia’s housing market is set for “a year of two halves” in 2025, according to Domain, with a mid-year interest rate cut to reverse a weak first-half performance and spark price growth.
With core inflation holding high, labour markets holding tight, and rising geopolitical risk, hopes for a rate cut early in the new year have been pushed back further and further. Domain is expecting a cash rate reduction mid-year.
