Clearance rates dip as supply outpaces demand
Auction activity has intensified as the spring selling season progresses, with 2,455 homes auctioned last week – the largest number since early June, according to property data provider Cotality.
Preliminary clearance rates have edged down during the first two weeks of spring, indicating that demand is not fully matching the increased number of properties coming to market.
The combined capital cities’ early clearance rate slipped to 74.8% last week, dropping below 75% for the first time in five weeks.
“Despite the subtle easing in the preliminary clearance rate, the early clearance rate is still a strong result, beating the winter average of 72.7%,” said Kaytlin Ezzy (pictured top), economist at Cotality.
Melbourne recorded more than 1,000 auctions for the third consecutive week, with 1,273 properties going to auction. This figure represents a 17.3% increase from the previous week and a 9.4% rise compared to the same period last year. Melbourne’s preliminary clearance rate improved to 75.2%, up from 73.2% the week before.
Sydney saw 837 homes auctioned last week, the highest volume since early June but 4% lower than the same week last year. The city’s preliminary clearance rate fell to 74.7%, the lowest in five weeks, continuing a downward trend from a recent peak of 80.3% at the end of August.
Brisbane led the smaller capitals with 148 auctions, four more than the previous week. The city’s preliminary clearance rate was 74.0%, slightly below the previous week’s 76.5%, but it remained above 70% for the second consecutive week.
Adelaide hosted 108 auctions, the highest in thirteen weeks. Of the results collected so far, 75.4% were successful, up from 74.5% the previous week and marking the city’s highest preliminary clearance rate since mid-August.
The ACT experienced its busiest week since late May, with 79 homes auctioned. The preliminary clearance rate rose to 73.3%, compared to 71.9% the week before.
“The volume of auctions is set to rise further this week, with around 2,630 homes scheduled to go under the hammer,” Ezzy said.
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