Combined auction clearance rate plummets

CoreLogic’s latest Property Market Indicator Summary showed that 1,716 properties were auctioned off during the week ended 4 August 2024, a measurable decrease on the 1,975 auctions held in the week ended 28 July 2024.

With this decreased activity came a drop in the success rate, with last week’s preliminary clearance rate of 69.2 per cent falling below the 70 per cent mark for the first time since the week ended 9 June 2024 (the King’s Birthday long weekend in most states).

Melbourne’s 801 homes that went under the hammer returned a preliminary clearance rate of 70.4 per cent, a slight increase from 69.8 per cent the week prior.

Sydney’s 594 homes taken to auction returned a preliminary clearance rate of 69.4 per cent, a significant drop from the previous week’s 76.5 per cent and only the second time in 2024 where Sydney’s early clearance rate has fallen below the 70 per cent mark.

Explaining Sydney’s low auction volume, CoreLogic highlighted that it was likely due to the bank holiday taking place in the state on 5 August.

Across the smaller capital cities, Brisbane’s 136 homes up for auction registered a preliminary clearance rate of 69.4 per cent, a notable increase from 61.9 per cent the week prior.

Adelaide’s 128 properties returned a preliminary clearance rate of 66.7 per cent, marking a sizeable decrease from 84.8 per cent the week prior.

Canberra’s early rate declined considerably last week, with the 44 homes up for auction returning a preliminary clearance rate of 46.8 per cent, the city’s lowest early rate so far in 2024.

In Perth, results from nine of the city’s 12 auctions had been reported, eight of which were successful.

Across Tasmania, the one property taken to auction emerged as unsuccessful.

Looking towards the coming weeks, CoreLogic reported that the number of auctions would slightly increase, with approximately 1,860 homes scheduled for auction in the week ended 11 July 2024 and around 2,000 auctions currently pencilled in for the following week.

This article was originally featured in Broker Daily’s sister brand REB.

[Related: Home values across the country losing momentum]