Improvement cited in auction clearance rates
CoreLogic’s preliminary figures show that there was an increased amount of auctions returning a successful result for the week concluding 23 August.
The latest numbers show that there were 1,082 capital city homes taken to auction during the week – up from 1,046 homes the week prior.
“According to preliminary results, 64.7 per cent returned a successful result. This was a minor improvement on last week’s preliminary figure of 64.3 per cent, later revising down to 58.4 per cent at final collection,” CoreLogic said.
“The last few weeks have seen both the clearance rate and number of homes taken to auction relatively steady each week, with volumes remaining around the 1,100 level and final clearance rates around the mid- to-high 50 per cent range.
“The performance across the two largest capital cities has been quite diverse as Melbourne continues to navigate through lockdown restrictions, resulting in lower levels of activity and higher withdrawal rates, while Sydney has seen volumes trending higher over the past few months and consistently higher year-on-year.”
CoreLogic figures show a mixed result when breaking down the activity in each capital city further.
“In Melbourne, preliminary results show that only half of the homes taken to auction this week were successful, down on last week’s preliminary figure of 63.6 per cent (final 53.7 per cent),” it said.
“The lower clearance rate was across a slightly higher number of auctions held, with 223 homes taken to auction, up on the 191 over the week prior. Of the 183 results so far, 41 per cent are reportedly withdrawn auctions, which is higher than last week’s final withdrawn rate (33 per cent).
“There were 632 Sydney homes taken to auction this week, returning a preliminary auction clearance rate of 71.9 per cent. This was an improvement on last week’s preliminary figure of 67.8 per cent, which later revised down to 61.9 per cent at final collection. Volumes were a higher 668 last week across the city, however. One year ago, a lower 503 Sydney homes were taken to auction, returning a higher success rate (78.1 per cent).
“Canberra continues to be the standout performer with 87.8 per cent of auctions successful this week at preliminary collection. The city does only account for a small portion of overall auctions, however.”