Auction Rates Will Decline Further: Corelogic

Auction clearance rates continue to slide for a fourth consecutive week further highlighting poor market conditions and current negative sentiment.

According to Corelogic, the once reliable spring selling season has succumbed to market pressures with just 46 per cent of homes sold at auction last week.

The highest clearance rate for 2018 was back in late February hitting 66.8 per cent.

Auction volumes are now tracking at their lowest level over the spring period this year relative to the same period over the past five years.

Related: Sydney and Melbourne House Prices Will Fall 20%: AMP

Capital city auction statistics

Sydney’s clearance rate which saw 61.3 per cent of auctioned properties sold the corresponding week a year ago, only managed 44.6 per cent this past week.

In Melbourne, 45.7 per cent of homes sold at auction last week, compared to 70.3% level seen one year ago.

Brisbane bottomed out with 38.1 per cent of auctioned houses clearing from the 129 auctions that took place last week.

There were 2,139 homes taken to auction, having increased on the 1,851 auctions held over the week prior when a marginally higher 47 per cent cleared.

This time last year, 2,519 homes were auctioned across the combined capitals returning a final auction clearance rate of 64.7 per cent.

Related: Weak Market Conditions to Impact House Prices: Report

Weekly clearance rate, combined capital cities

The combined capital cities are now expected to see an uplift in auction activity this week, with 2,782 homes scheduled to go under the hammer.

This is an increase of 30 per cent when compared to last week’s final results which saw 2,139 properties taken to auction.

Sydney volumes will host 756 auctions, while Melbourne will see an increase of more than 500 from the prior week to 1,630 auctions.

Across the remaining auction markets, volumes are higher across Brisbane and Canberra, while activity across Adelaide and Tasmania will remain steady, and Perth will host 20 per cent fewer auctions.