The auction clearance rate of Australia's capital cities was 74.6 per cent last week, virtually flat with the previous week's result. But Sydney and Melbourne's clearance rates are in a downward trend, says CoreLogic.
The auction clearance rate of Australia's combined capital cities was 74.6 per cent last week, up modestly from a final result of 74.0 per cent the week before, according to CoreLogic. Sydney and Melbourne's clearance rates show a softening trend.
A total of 1,662 auctions were held across the nation's capital cities, down from 2,350 auctions the previous week.
The results are stronger than they were at this time last year, when a clearance rate of 67.7 per cent was recorded, but volumes are lower this year. For the same week last year, 2,230 homes went under the hammer.
Melbourne recorded a preliminary clearance rate of 78.4 per cent, compared with 73.2 per cent for the same week last year, according to CoreLogic data.
Middle Melbourne suburbs accounted for 40 per cent of this weekend’s auction sales, Joseph Walton, president of the Real Estate Institute of Victoria told SCHWARTZWILLIAMS. Both Epping and Reservoir recorded 11 sales in each.
The City of Whittlesea was the city’s best performing municipality with the highest number of auctions (38), sales (35) and the strongest clearance rate (92 per cent), according to Walton.
Geelong West was the top performing auction suburb in regional Victoria with six auctions and a clearance rate of 83 per cent, he said.
Walton said that while clearance rates are down this week, the market is still booming.
“While auction volumes were down this weekend, the city’s auction market is set to bounce back strongly with three back-to-back Super Saturdays scheduled," he said.
“Vendors in Melbourne’s middle ring suburbs are continuing to see strong results under the hammer, accounting for 40 per cent of all auction sales this weekend.”
Sydney recorded a preliminary clearance rate of 77.8 per cent, with 585 auctions. The result is stronger than at this time last year, when a clearance rate of 71.8 per cent was recorded.
Real Estate Institute of New South Wales deputy president Leanne Pilkington told SCHWARTZWILLIAMS that the strong clearance rates and lower auction numbers are at the heart of the affordability problems in Sydney.
"Whilst demand continues to outstrip supply the price increases will continue," she said, adding, "Hopefully the government will have a serious plan to address some of the concerns in this week's budget."
"A total of 95 auctions were held in Adelaide this week, up from 83 last week, and similar to last year (94)," Alex Ouwens, president of the Real Estate Institute of South Australia told SCHWARTZWILLIAMS.
"Preliminary results for the week show 66.7 percent sold, up from 63.5 percent last week," he said.
"The jobs market in Adelaide continues to improve with economic confidence slowly climbing," said Ouwens.
Ouwens said solid capital growth and good yields are attracting interstate investors.
"In the last 12 months, Adelaide house prices went up by just under 4% across the board, with apartments up by over 5%. There are inner city suburbs travelling at twice that rate of growth at present. Sustainable growth with low interest rates sees strengthening interstate interest."
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