Auction clearance rates in both Melbourne and Sydney were strong this weekend continuing the post election bounce in confidence in our property markets.
The prospect of easier access to finance, falling interest rates and a tax cut has boosted confidence, driving strong auction results across Australia.
However the number of properties offered for auction was low this weekend as is normal during the school holidays.
Melbourne’s preliminary auction clearance rate for Saturday 13th July was reported by Domain as 69%.
319 properties were listed for sale by auction this weekend but there was a high rate (27.6%) of Melbourne auctions that were not reported by their selling agents, meaning the final clearance rate will end up somewhere around 63% to 66%.
This will be a little lower than last week’s revised very strong clearance rate of 67%.
This time last year the rate was 51% (with 485 properties going up for auction.)
Two years ago (2017) a 72% auction clearance rate was reported for the 611 properties listed for auction.
Sydney preliminary auction clearance rate as reported by Domain today was a very strong 74.269% but only 283 properties listed for sale under the hammer and so far 210 results were reported.
The unreported rate was 25.8%, meaning the final clearance rate is likely to drop to around 67% to 70%.
Last weekend’s final clearance rate was revised to 66%.
A year ago Sydney could only muster a 43% clearance rate for the 347 properties listed for auction.
Two years ago (2017) a 64% auction clearance rate was reported for the 497 properties listed for auction.
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,
To get any clear trends we really need to see volumes of properties offered at auction rising, but this is unlikely to occur for a month or so until the school holidays are over.
However, increased buyer interest and strong auction clearance rates should give sellers who’ve been holding off selling their homes some encouragement to put their homes on the market.
At the same time falling interest rates and tax cuts on the way should bring buyers back into the market.
Weekend auction numbers continue to decline to what are now remarkably low levels – particularly in Sydney and Melbourne – even for the typically quieter mid-winter housing market.Buoyed by lower interest rates and a well-overdue easing in lending conditions, buyers remained relatively active in weekend auction markets with clearance rates continuing to track well above last year’s results at the same time.The acid test for a recovering market will however come in a month when it will be revealed if sellers in reasonable numbers are prepared to buy into what appears to be – at least for buyers – a revival in market confidence.
Here are the auction clearance rates as reported by Domain
Shane Oliver, Chief economist of AMP Capital tweeted the following graphs which show the clear spike in auction clearance rates since the election -another sign that we’re nearing the bottom of the cycle in Sydney and Melbourne (in fact it may have already been reached in Sydney.)
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