Auction activity warms up as spring approaches

27 AUG 2024 By Malavika Santhebennur 2 min read Investor Strategy

The combined capitals’ preliminary auction clearance rate increased slightly last week and reached the highest early clearance rate since the last week of July.

CoreLogic data has revealed that the combined capitals’ preliminary auction clearance rate reached 71.4 per cent last week.

The result was 70 basis points higher than the previous week (70.7 per cent), which later revised down to 64.8 per cent.

The volume of capital city auctions has been rising, the property research group noted, with 2,052 homes going up for auction last week for a median price of $1.1 million.

Out of this, 1,624 houses were auctioned off for a preliminary clearance rate of 73.2 per cent and a median price of $1.3 million.

The remaining 428 were units, which had a preliminary clearance rate of 64.3 per cent and sold for a median price of $812,500.

While this number is down from the same time last year (2,278), it is a clear indication that auction activity is “warming up as we approach spring”, CoreLogic said.

The results collected so far revealed that a total of 1,496 homes went under the hammer last week, with Melbourne comprising 661 of those homes.

The Victorian capital city had a preliminary clearance rate of 68.7 per cent (up from 67.4 per cent the previous week, which revised down to 61 per cent on final numbers).

Sydney held 807 auctions with a preliminary clearance rate of 74.9 per cent, marginally above the previous week’s result of 74.6 per cent (revised down to 67.6 per cent on final numbers).

CoreLogic observed a consistent pattern among the smaller auction markets, with Adelaide leading the clearance rate at 79.5 per cent, followed by Brisbane (67.3 per cent) and Canberra (56.5 per cent).

“With the flow of fresh listings, including auctions, trending higher, the depth of market demand will be tested over the coming weeks and months,” it said.

“This week we are expecting around 2,300 auctions to be held with the volume of auctions likely to rise more substantially into spring and early summer.”

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