Public holiday lull sees fewer homes go under the hammer, with activity set to pick up next week
Auction volumes across the capital cities are set to fall this week as several states pause for a long weekend, forward schedules point to a quick rebound in activity.
“Across the capital cities, 1,919 homes are currently scheduled for the auctioneer’s block, down when compared with 3,336 auctions held last week, but up 22.1% from the same time last year (1,572),” said Gerard Burg, head of research at Cotality.
“Next week is expected to see a rebound in activity, with 2,923 homes set to go under the hammer.”
Sydney will account for more than half of this week’s auctions, with 1,066 homes set to be offered. That represents a 7.9% decline from last week’s 1,157 auctions, but a 26.6% increase compared with the same week a year ago. Current schedules indicate more than 1,000 Sydney homes are slated for auction in each of the following two weeks, suggesting vendor supply remains firm.
Melbourne’s auction numbers have been sharply curtailed by the public holiday. Only 547 homes are expected to go to auction this week, 68.2% fewer than last week. Even so, volumes are still 12.6% higher than at this point last year. The return of vendors after the long weekend is expected to be a key driver of the forecast rise in total auctions next week.
Among the smaller capitals, Brisbane is due to host 126 auctions, down from 177 last week. Adelaide has 108 scheduled, compared with 134 previously. Canberra’s market is set for a more pronounced pullback, with 56 auctions scheduled versus 131 last week.
In Perth, 13 auctions are listed, a slight increase from 12 a week earlier, while no auctions are scheduled in Tasmania after five took place last week.
Source: Cotality
Last week was the busiest auction week since late November, with 3,336 homes taken to auction across the combined capitals, up from 2,755 the previous week and 2,749 in the same week last year.
Despite the higher throughput, the combined capital city clearance rate continued to edge lower. It slipped to 60.9% last week, down from 62% the week before and 62.6% a year earlier, indicating a more balanced market between buyers and sellers.
Melbourne recorded 1,720 auctions last week, the highest tally since late October. That compared with 1,327 auctions the previous week and 1,381 at the same time last year. The city’s clearance rate firmed slightly to 60.5%, after sitting below 60% for the prior two weeks, including 59.3% the week before.
In Sydney, 1,157 homes went to auction last week, up from 987 a week earlier and 955 in the comparable week last year. The lift in volumes coincided with a lower clearance rate of 59.8%, extending a downward trend since the recent peak of 70.8% in the week ending Feb. 8.
Activity in the smaller capitals was more modest in absolute terms but remained an important indicator of local conditions. Brisbane hosted 177 auctions last week, up from 159 the previous week. Adelaide saw 139 auctions, slightly below the prior week’s 141. Canberra recorded 131 auctions, rising from 123. Perth had 12 auctions, down from 15, and Tasmania held five.
Adelaide posted the strongest clearance rate among the smaller capitals at 71.6%, although this was down from 85.8% the week before. Brisbane’s clearance rate improved to 63.8% from 61.6%. Canberra moved back above the 60% mark, with a clearance rate of 60.3% compared with 58.5% previously. Perth’s small sample of auctions produced a clearance rate of 66.7%, down from 86.7% the prior week.
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