2021 overtakes 2017 as ‘busiest auction year on record’
The run-up to Christmas has been a busy one for Australia’s real estate market, with CoreLogic confirming that the week ending 19 December 2021 was the second busiest on record.
Last week, CoreLogic predicted that the seven-day period would be a big one – and preliminary results have not disappointed.
The research group has reported that 4,756 homes were taken to auction across Australia’s capital cities over the week.
It marks the fourth consecutive week where more than 4,000 capital city homes went under the hammer, a feat CoreLogic said “has never been seen before”.
Taking this week’s preliminary numbers into consideration, 116,684 capital city auctions have been held over the 2021 year to date.
CoreLogic reports that this figure sees it overtake 2017 as the busiest auction year on record when 109,268 homes went under the hammer.
Continuing the trend from previous weeks, high volumes have had an impact on the clearance rate. Of the 3,838 results already collected, 63.4 per cent were successful – down from the preliminary clearance rate of 66.6 per cent recorded last week, which then revised down to a final clearance rate of 64 per cent.
Melbourne scored its second-busiest weekend for auctions ever – with 2,140 homes going under the hammer after last week’s record-breaking 2,318.
Of the 1,778 results already collected, 62.3 per cent proved successful. This is down from the preliminary clearance rate of 65.3 per cent reported a week earlier, which then revised down to a final clearance rate of 63.3 per cent.
Sydney also had its second-busiest auction week on record – however, it has proved equal with the last week in November back in 2014.
From 1,315 results already reported, the city is reporting a preliminary clearance rate of 60.8 per cent – which is equal to last week’s final clearance rate and down from the 63.6 per cent preliminary rate first reported.
According to CoreLogic, it’s highly likely Sydney’s final clearance rate will fall below 60 per cent for the first time in 2021 when final results are released.
Brisbane, Adelaide and Canberra all held strong. The trio all overtook the week prior as their busiest auction weeks ever recorded.
Canberra is reporting a preliminary clearance rate of 73 per cent from 254 auctions, while Adelaide’s 345 auctions have led to a 71.1 per cent preliminary success rate.
Up in Brisbane, a preliminary auction clearance rate of 69.9 per cent has been reported from a record total of 351 auctions.
Perth is reporting a preliminary clearance rate of 51.9 per cent from 27 auctions, out of a total of 32.
In Tasmania, two of the three auctions scheduled were withdrawn, with one final result remaining to be collected.
Christmas and beyond
With Christmas Day falling this Saturday, CoreLogic has noted that auction activity will “slow sharply”.
Only approximately 600 auctions are set to take place over the coming week – but it was noted that this is “still remarkably higher than average for the lead into Christmas”.
Activity does usually rebound in late January or early February, but CoreLogic has hinted that we could see an earlier start if December momentum does carry through.