Theresa Worrell: This weekend’s auction clearance rates

Auction clearance rates in Melbourne were very strong this weekend, while Sydney’s were down a little from last weekend, but they were still strong.

Melbourne’s preliminary auction clearance rate for Saturday 29th June was reported by Domain as 73.2%. 463 properties were listed for sale by auction this weekend but there was a high rate (21%) of Melbourne auctions that were not reported by their selling agents, meaning the final clearance rate will end up somewhere around 66% to 69%.

Auction Market

This will be the highest auction clearance rate for Melbourne since late 2017 before the market faltered.,

Last weekend’s auction clearance rate was revised to 66%.

This time last year the rate was 55% (with 641 properties going up for auction.)

Two years ago (2017) a 69% auction clearance rate was reported for the 721 properties listed for auction.

Sydney preliminary auction clearance rate today was 67.0% with 428 properties listed for sale under the hammer and so far 309 results were reported.

The unreported rate was a high 27.8%, meaning the final clearance rate is likely to drop to around 60% to 63%.

Last weekend’s final clearance rate was revised to 57% after initially being quoted as 63%.

A year ago Sydney could only muster a 46% clearance rate for the 493 properties listed for auction.

Two years ago (2017) a 63% auction clearance rate was reported for the 501properties listed for auction.

Commentary:

Both Melbourne and Sydney home auction markets are tracking well above the clearance rate levels recorded over the same period last year and each with underlying upward trends.

The number of properties listed for auction in our two big capital cities remains low compared to previous years, rising auction clearance rates should gives sellers who’ve been holding off selling their homes the encouragement to put their homes on the market.

Dr Andrew Wilson, chief economist of MyHousingMarket.com.au comments:

Sydney and Melbourne home auction markets continue to report clearance rates at the highest levels since 2017 with solid rising buyer momentum contrasting to the fading market of a year ago.

Seller numbers however remain relatively subdued – particularly in Melbourne and will remain so for at least the next month over the school holiday period.

Lower interest rates are a key catalyst for a recovery in buyer confidence with another cut next week by the RBA – if it eventuates – to continue fuel a market revival.

Here are the auction clearance rates as reported by Domain

auction clearance rates