Auction clearance rates up, volumes down

According to CoreLogic’s latest property market data, a total of 1,185 homes were scheduled for auction across Australia’s capital cities in the week ending 5 July, down from 1,485 in the previous week.

CoreLogic attributed the decline in volumes to a seasonal lull in activity associated with the school holiday period.

However, a greater proportion of homes were sold under the hammer over the week, with CoreLogic reporting a preliminary clearance rate of 65.1 per cent, up from 64.5 per cent in the previous week – later revised down to 60.6 per cent.

Both volumes and clearance rates were higher when comparing the week ending 5 July to the same week last year, during which 953 homes were taken to auction with a clearance rate of 64 per cent.

Canberra recorded the strongest clearance rate over the past week (81.6 per cent), followed by Adelaide (70.8 per cent), Sydney (68.1 per cent) and Melbourne (64.3 per cent).

CoreLogic also reported that national home values fell 0.1 per cent over the past week, spurred by a 0.2 per cent fall in Melbourne, and 0.1 per cent declines in both Sydney and Brisbane.

This follows a 0.7 per cent fall throughout the month of June and a 0.4 per cent decline in May.

Residential property prices were initially forecast to decline by up to 30 per cent in response to the COVID-19 crisis; however, such forecasts have been revised amid an earlier than expected easing of lockdown restrictions.

AMP Capital chief economist Shane Oliver said he expects prices to decline by between 5-10 per cent throughout 2020 and into 2021.

[Related: More housing stimulus on the way: Morgan Stanley]