In Australia’s property market, auction activity picked up last week, reaching the highest level of auction activity since the week before Easter. CoreLogic’s latest figures captured a total of 1,784 auctions in the major capitals, which represents an increase of 11.8% compared to the week before. At the same time, this figure is still 20.3% lower than in the same period last year, when housing market conditions were more favourable.

Key Takeaways

Total Auction Activity

The auction activity volume last week reached 1,78,4, which is an increase from the pre-Easter period, where the level of auctions was around 3,066 housing auctions. The improvement in numbers represents a phased pickup in market activity but is still far below last year’s numbers.

Preliminary Clearance Rate

The preliminary clearance rate of auctions for capital cities remained above the 70% mark for the second week in a row at 70.2%. This was in line with last week’s rate, which was reported at 70.1% but later revised down to 63.1% once the full datasets were incorporated.

Trends By City

– Melbourne: The city had 830 auctions, which was an increase from 776 the week before. The preliminary clearance rate fell slightly to 73.2% from 74.4%. This is still the second-best preliminary clearance rate recorded this year.

– Sydney: With 665 auctions, an increase from 562, Sydney's turnover rate decreased to 67.7% from 69.4%. This marks the seventh consecutive week the rate remains under 70%.

– Adelaide: Among the smaller capitals, Adelaide had the largest auction volume with 116 homes auctioned. The clearance rate improved to 66.7%, up from 60.0% the week before, marking the city's best result in three weeks.

Brisbane: Auctioned homes increased from 104 to 109 with a preliminary clearance rate of 69.7%, the highest since August last year.

– ACT: Auctions held dropped to 50 from 54. The clearance rate also decreased to 62.9%, down from 69.4% the week prior.

– Perth: Seven auction results were reported, six of which were successes.

– Tasmania: Both auction results collected showed no sales.

Casting The Weeks Ahead

CoreLogic forecasts approximately 1,600 auctions to go live this week, with an anticipated increase to 2,200 next week. This growth pattern demonstrates an expected rise in market activity, but the final clearance rates will show a better reflection of the health of the market.

The Australian property market has rebounded with the strongest volume of auctions held since Easter, but mixed clearance rates across different regions indicate a divided market. In the weeks ahead, bankers will be looking closely for further signals or trends indicating where the market is headed.

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