The preliminary clearance rate has slipped further this week on the back of increased auction volumes across the combined capitals.
CoreLogic’s data indicates 2685 properties went to auction this week resulting in an initial success rate of 67.6 per cent.
The volume was higher than last week when 1819 properties were taken to auction for the ANZAC Day long weekend, but lower than the same week last year when 2902 properties went to auction.
Of the 2119 results collected so far, CoreLogic said 67.2 per cent were successful, overtaking the previous week as the lowest preliminary clearance rate recorded so far this year.
“The previous week returned a preliminary clearance rate of 67.6 per cent, revising down to 63.4 per cent at final figures,” they noted.
“This time last year, the clearance rate was a higher 77.7 per cent across the combined capital cities.”
Melbourne
In Melbourne, 1285 homes were taken to auction this week, up from 689 the previous week, but slightly less than this time last year when 1310 auction took place.
Of the 1051 results collected so far, 68.4 per cent have been successful.
“The success rate is similar to the previous week’s preliminary clearance rate (68.3 per cent), which revised down to 63.5 per cent at final figures,” CoreLogic said.
Over the same week last year, 75.1 per cent of auctions were successful.
Sydney
There were 907 auctions held across Sydney this week, compared to 715 over the previous week and 1119 this time last year.
The clearance rate slipped further week-on-week, with 62.3 per cent of the 703 results collected so far reporting a successful result.
The previous week recorded a preliminary clearance rate of 64.5 per cent, revising down to 59.5 per cent at final figures.
“Sydney’s final clearance rate has held below 60 per cent for the past two weeks and it’s likely to be the case again this week once the remaining results are collected,” CoreLogic stated.
The smaller capitals
Across the smaller capitals, Adelaide recorded the highest preliminary auction clearance rate (80.2 per cent), followed by Canberra (69.5 per cent) and Brisbane (69.3 per cent).
In Perth, nine results have been collected so far, seven of which were successful.
Brisbane was the busiest auction market this week with 178 homes taken to auction across the city, followed by Adelaide (156).
Canberra was host to 142 auctions this week, while 16 auctions were held in Perth. There was just one auction held in Tasmania this week.
Domain results
Domain has reported a national preliminary clearance rate of 66.9 per cent after tracking 2231 auctions across the major capitals.
So far, results are in for 1488 of those auctions, with 969 properties selling (to the value of $873.2 million), while 221 properties were withdrawn.
Last week, the final clearance rate settled at 62.3 per cent after 1465 properties went to auction.
Results were provided for 1218 auctions, with 759 properties selling (to the value of $614.2 million), while 190 properties were withdrawn.
This time last year, the clearance rate was 76.1 per cent after 2258 properties were taken to auction.
Results were provided for 2159 of those auctions, with 1644 properties selling (to the value of $2217 million), while 196 properties were withdrawn.
Sydney
Sydney’s preliminary clearance rate is sitting at 62.4 per cent after 822 properties went under the hammer this week.
So far, results are in for 495 of those auctions, with 309 properties selling (to the value of $331.3 million), while 134 properties were withdrawn.
Last week, Sydney’s final clearance rate was 57.4 per cent after 636 properties went to auction.
Results were provided for 544 of those auctions, with 312 properties selling (to the value of $289.3 million), while 131 properties were withdrawn.
This time last year, Sydney’s clearance rate was 76.9 per cent after 920 properties went to auction.
Results were provided for 874 of those auctions, with 672 properties selling (to the value of $1143.1 million) while 107 properties were withdrawn.
Melbourne
Melbourne had 1116 properties go to auction this week, resulting in a preliminary clearance rate of 68.4 per cent.
So far, results have been provided for 776 of those auctions, with 531 properties selling (to the value of $446.8 million) while 72 properties were withdrawn.
Last week, Melbourne’s final clearance rate came in at 63.5 per cent after 580 properties went to auction.
Results were provided for 480 of those auctions, with 305 properties selling (to the value of $225.8 million), while 42 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 74.8 per cent after 1069 properties were taken to auction.
Results were provided for 1026 of those auctions, with 767 properties selling (to the value of $880.3 million), while 79 properties were withdrawn.
Ray White results
The Ray White Group finished April with 2858 scheduled auctions for the month. This was highest volume of auctions the group has enjoyed in 2022 so far and an increase of 50.1 per cent compared to a year ago.
The Group noted South Australia and Victoria this week both enjoyed high clearance rates with this success rates sitting at 84.2 per cent and 80 per cent respectively on auction day.
These figures were an increase on last year and were above their six and 12 month averages.
The group had more than 400 auctions scheduled on Saturday and the preliminary clearance was 76 per cent nationally. There were 4.2 average registered bidders per action and three of those were active.
The top sale was in Paddington where a beautiful Sydney terrace with a cherished address sold for $3 million, while in Adelaide a whopping 35 bidders turned out, all vying to buy a totally dilapidated but large unit in a coveted location. It eventually sold for $415,000 to a neighbour.
“All eyes will be on the Reserve Bank of Australia this week to see if it raises the cash rate after its board meeting on Tuesday,” the Ray White Group noted.
“Inflation has hit levels not seen in 20 years. The jump was driven by the rising cost of fuel construction and groceries, which have not been this high since the GST was introduced.”
Ray White Chief Economist Nerida Conisbee said it was looking increasingly likely that the cash rate will rise on Tuesday after inflation data came in at 5.1 per cent annually.
“If it’s not addressed, it is likely that it will continue to grow and as a result, interest rates might have to go a lot further,” Ms Conisbee said.
“As we came out of the worst of the pandemic, it was always expected that inflation would be high however it was expected to be transitory.
“Now there are other external factors which are keeping prices higher for longer – in particular, the war in the Ukraine, blocked supply chains and continued shut downs in China. Higher interest rates won’t fix any of these but it will slow down the economy and prevent it overheating.”
New South Wales
Ray White New South Wales chief auctioneer Alex Pattaro said that despite the uncertain times of potential interest rate rises and the federal election, sellers should have great confidence in the fact there’s still an average of four registered bidders across Sydney auctions with three being active.
“There is a shortage of top tier stock and buyers are prepared to sit and wait until the right home becomes available,” he said.
“Property prices for top grade homes are holding strong and still obtaining top dollar.
“We aren’t seeing buyers stretch themselves as much as we saw last year, with more buyers suggesting that they have other options, something we haven’t seen or heard in the market in a while.”
Victoria
Ray White Victoria and Tasmania CEO Stephen Dullens said that despite the interrupted April, results remained strong.
“With the Easter and ANZAC Day long weekends behind us, the property market has once again returned to full activity,” Mr Dullens said.
“Across Victoria, Ray White has almost 250 scheduled auctions this week, in line with some of our strongest weeks this year and around 50 percent higher than the same time last year.”
Despite lots of talk of inflation and interest rate rises, April has once again proven a strong month across Victoria.
“Our April results are set to surpass the results achieved this time last year, which was at the time our strongest ever April. Demand from buyers and auction results remain strong, with preliminary results showing this week an average of 3.6 bidders per auction.”
South Australia
Ray White South Australia Chief Auctioneer John Morris said local buyers, sellers and agents were choosing to ignore any stories of a downturn in property prices.
“We’re still selling over 80 per cent of properties under the hammer with an average of eight registered bidders per auction,” Mr Morris said.
“With the sale above the highest offer sitting at 15.5 per cent – that’s one of the highest in the country and something I am very proud of.
“That Adelaide affordability story has always made it attractive for home buyers and the continuing growth that we’ve had over the past 18 months, while welcomed by the sellers, hasn’t deterred the buyers much in and around Adelaide.
“Investors are making up a quarter of all purchases around the state. So that’s a good thing for the sellers in this market.
“Ray White makes up 27 per cent of this week’s auction numbers throughout the state. And we have an internal share of 43.6 per cent that has stayed pretty consistently above 40 per cent for the whole year.
“We’re seeing unbelievable numbers, incredible figures and yet again, it doesn’t look like anything slowing anytime soon.”
