The lower clearance rate this week was across a similar number of auctions week-on-week, with 1,100 capital city homes taken to auction, slightly lower than the 1,124 homes auctioned the week prior.
The combined capital cities returned a preliminary auction clearance rate of 68.3 per cent over the first week of August, coming in lower than last week’s final clearance rate when 68.6 per cent of auctions reported as successful, according to CoreLogic.
The lower clearance rate this week was across a similar number of auctions week-on-week, with 1,100 capital city homes taken to auction, slightly lower than the 1,124 homes auctioned the week prior. Year-on-year figures continue to see clearance rates trend higher while volumes remain lower each week.
Source: CoreLogic.
Despite the lower weighted average result this week, Melbourne and Sydney returned a preliminary clearance rate above 70 per cent for another week.
Melbourne
There were 500 Melbourne homes taken to auction this week, 73.3 per cent of which returned a successful result, up on the 71.7 per cent final auction clearance last week when volumes were higher (544).
Real Estate Institute of Victoria (REIV) recorded a clearance rate of 76 per cent was recorded this week compared to 71 per cent last week and 60 per cent last year. There were 375 auctions reported to the REIV, with 285 selling and 90 being passed in, 43 of those on a vendor bid.
REIV CEO Gil King said the auction market continues its strong comeback with a 76 per cent clearance rate over the weekend.
“Glen Waverley and Reservoir recorded eight auction sales each, followed by Glen Iris with all six listings sold," he said.
“The top sale was 44 Alma Terrace, Newport which sold under the hammer for $2,825,000 representing a new auction record for the suburb.”
Sydney
Volumes were relatively steady across Sydney this week, however, the city returned a lower week-on-week clearance rate. There were 381 homes were taken to auction this week, returning a preliminary auction clearance rate of 74.8 per cent, lower than the 75.7 per cent final clearance rate the week prior when 394 auctions took place.
Real Estate Institute of New South Wales President Leanne Pilkington said agents are reporting a high level of interest in open for inspections, indicating these clearance rates are likely to continue, however, the low transactions numbers certainly cause for concern.
Smaller markets
Across the smaller auction markets, volumes increased across all cities with the exception of Tasmania. Brisbane was the best performing according to preliminary figures with 54.5 per cent of homes clearing at auction, while only 28.6 per cent of Perth homes sold.
“Since the election, I have seen a lot more urgency in the market place and I'm noticing there are more cash buyers looking to purchase," said Joseph Lordi, from Brisbane's McGrath Bayside/Manly.
"While I continue to see the local buyer market to be the strongest purchasers, there has still been an increase in interstate buyer interest since January," said Mr Lordi.
“Brisbane is a city that shows tremendous value in comparison to Sydney and Melbourne. For the Brisbane Bayside market, I’m finding a great majority of out of area buyers are coming from nearby suburbs such as Carindale, Bulimba and Morningside. These buyers tend to spend most of their weekends here and are attracted by the natural beauty of the area and its close access to Moreton Bay, in many cases, they decide to relocate.”
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