Preliminary clearance hits highest level since late May
The preliminary clearance rate hit its highest level since May after auction volumes increased this week.
CoreLogic reported that 1,799 properties went under the hammer in the capitals combined, giving an initial success rate of 63.4%.
Volume this week is 11.2% higher than last week and represents a 36.7% increase from two weeks ago.
The previous two weekends were impacted by holidays in several states.
“With 1,441 results collected so far, the capitals’ combined preliminary clearance rate held above 60% for the sixth straight week at 63.4%,” CoreLogic said.
That’s 1.1 percentage points higher than the previous week’s initial pass rate of 62.3%, and also represents the highest combined preliminary clearance rate since late May.
“Despite the upward trend in auction volume, auction activity this week is significantly lower than the number of auctions held at the same time last year (2,708) when selling conditions were stronger and higher clearance rates (80.2%),” CoreLogic said.
Melbourne hosted the busiest auction week, with 721 homes auctioned across the city this week.
The week before, 833 auctions took place in Melbourne, while a combination of the Queen’s Memorial Holiday and the AFL Grand Final saw the number of auctions drop to just 130 the previous week.
At this time last year, 1351 houses went under the hammer.
Of the 619 auction results collected so far, Melbourne recorded its highest preliminary approval rate since early May (68.4%), with 66.1% of auctions achieving a positive result.
The previous week saw a preliminary clearance rate of 64.3%, while 77.3% of auctions held at this time last year were successful.
Sydney hosted 686 auctions this week, up 41.7% from last week, when the Labor Day long weekend saw just 484 homes put up for auction.
With 545 results collected so far, Sydney’s preliminary clearance rate has increased by 90 basis points from 60.4% last week to 61.3% this week.
This is Sydney’s highest preliminary clearance rate since mid-August (63.4%).
Despite the rise in the preliminary clearance rate, Sydney’s withdrawal rate fell from 17% last week to 21.1% this week, while the share of properties going to auction fell to its lowest rate since the start March (17.2%) to 17.6 percent.
At the same time last year, 81.7% of the 825 auctions held in Sydney were successful.
The small capitals
Compared to the previous week, auction activity increased in Canberra by 86.9%, Adelaide by 44% and Brisbane by 5.1%, but fell by 47.4% in Perth.
Adelaide hosted the busiest week among the small capitals, with 144 homes auctioned, followed by Brisbane (124) and Canberra (114).
Canberra’s preliminary clearance rate topped 70% for the first time since early June, with 70.9% of auctions returning a positive result, while Adelaide and Brisbane’s preliminary clearance rate stood at 69, 7% and 49.4% respectively.
In Perth, 10 homes have been auctioned this week, so far only one has returned a positive result. No auctions took place in Tasmania this week.
Domain reported a preliminary clearance rate of 63.5% after tracking 1536 auctions in major capitals.
So far, 1,045 of these auctions have achieved results, with 664 properties sold (worth $571.6 million), while 147 properties have been withdrawn.
Last week, the final clearance rate stood at 59.1% after 1159 auctions.
Results were provided for 1,000 of those auctions, with 591 properties sold (worth $468.8 million), while 118 properties withdrew.
This time last year, the closing rate was 77.7% after 1,715 properties went up for auction.
Results were provided for 1,661 of these auctions with 1,291 properties sold (worth $1,818.8 million), while 163 properties were withdrawn.
Sydney’s preliminary clearance rate is 63.5% this week after 631 properties went up for auction.
So far, results have been provided for 392 of these auctions, with 249 properties sold (worth $265.2 million), while 98 properties have been withdrawn.
Last week, the final clearance rate was 56.3% for Sydney, after 288 properties went up for auction.
Results were provided for 229 of those auctions, with 129 properties sold (worth $124.5 million) while 49 properties withdrew.
This time last year, Sydney’s clearance rate was 81.5% after 567 properties went up for auction.
Results were provided for 536 of those auctions, with 437 properties sold (worth $842.9 million), while 48 properties were withdrawn.
Melbourne’s preliminary clearance rate currently sits at 63.6 per cent after 650 properties went up for auction.
So far, results are known for 503 of these auctions, with 320 properties sold (worth $246.3 million), while 36 properties have been withdrawn.
Last week, Melbourne’s final clearance rate was 59.6% after 727 auctions.
Results were provided for 641 of those auctions, with 382 properties sold (worth $288.8 million), while 60 properties were withdrawn.
At this time last year, Melbourne’s clearance rate was 72.6% after 836 properties went up for auction.
Results were provided for 818 of those auctions, with 594 properties sold (worth $705.6 million), while 101 properties were withdrawn.
Ray White Results
Ray White reported huge crowds at auctions nationwide on Saturday, particularly in Melbourne where some bumper auctions have seen throngs of up to 150 watch live market action.
The group noted that the number of registered bidders was also firming up and that many agents were reporting a shift in sentiment in the air following the latest rate hike this week, which was lower than most commentators would expect. predicted at 25 basis points.
The Ray White Group announced a preliminary clearance rate of 66% on Saturday, with 305 Ray White auctions scheduled nationwide.
Auction crowd sizes have risen to an average of 30 people nationwide, an increase in recent weeks.
The average number of registered bidders jumped nationwide to 4.2 (from 3.6 bidders last weekend), while the number of active participating bidders remained stable at 2.6.
Sydney had a preliminary clearance rate of 70 per cent on Saturday, albeit on a low volume of 92 auctions booked, but with an average of 5.2 registered bidders per auction, this proved better than the national average.
Ray White New South Wales chief auctioneer Alex Pattaro said this weekend was the strongest auction weekend the leading group had seen in some time.
“Buyers are looking to secure a home and will stretch their budget when the competition comes around.
“Despite greater energy in the market, good auction processes and practices achieve the best results.
“There is a shortage of good stocks in the market. And we would recommend any seller who was considering coming into the market to come now to take full advantage of what we have seen,” Mr. Pattaro said.
Ray White Victoria’s chief auctioneer, Matt Condon, said activity in the property landscape was on the rise with 156 auctions scheduled for the group in Victoria this week.
“The exceptional weather in Melbourne and the large crowd also created a great atmosphere on auction day.
“Based on preliminary data from the Ray White Group, this week has seen an average of 3.7 confirmed bidders per auction,” Mr. Condon said.
“An increase in auction volume combined with more properties slated to hit the market will provide buyers with more choice.
“Sellers who have chosen to meet the market will experience more inspections, bidders, competition, and ultimately a better auction result.
“With all eyes on the real estate market to watch its performance in the last quarter of 2022, we expect a strong end to the year as we consistently see an increase in supply met with equal levels of demand. .”
Ray White South Australia chief auctioneer John Morris said the second weekend in October saw many people celebrating Oktoberfest across Australia.
In the state of the festival, he said those who chose to continue believing in the auction process also had good reason to celebrate.
“The preliminary auction clearance rate is well into the 80th percentile here in South Australia, following last week’s incredible 78 per cent.
“There are six registered bidders per auction, and the timing is still very good to go to auction in South Australia with 56 auctions scheduled for this week,” Mr Morris said.
Ray White Queensland’s chief auctioneer, Gavin Croft, said there was no doubt the bidding reflected the real-time market.
“Auctions offer sellers a real insight into the energy and pulse of the market.
“These observations that we see in buyer behavior and specifically in the live market data that Ray White reports weekly are imperative for decision-making, both for agents and sellers,” Croft said. .
“There is no longer a linear line between a comparable sale made 60 or 90 days ago and today’s market.
“Keeping the price from a comparable prior sale made several months ago is actually detrimental.
“We’ve seen that cost sellers dearly, especially since every interest rate hike happens and impacts the market, whether we like it or not. It’s just a reality because it affects borrowing and it affects the behavior of our buyers.
“Today’s market is the only barometer of decisions and that is why the live data we are able to report weekly is so important.
“For me, this week, there was a real change or a real change.
“Clearance rates this week were personally the highest for about 16 weeks, led by a large auction event on the Gold Coast that we had where we had clearance rates of 70% or more.
“Sellers and buyers are balancing where they see the markets individually and it’s been very nice to see.”