Key takeaways
Preliminary auction clearance rates were generally higher over the weekend, especially in Sydney and Melbourne.
1335 properties were listed for auction, a few more than last weekend’s 1243, but well below the same weekend last year’s 1551 auctions.
Adelaide was once again the strongest performing auction market reporting a 85.9% clearance rate.
Other auction clearance results this weekend were Canberra (33.8%); Melbourne (65.7%), Sydney (65.7%) and Brisbane (40.6%).
Dr Andrew Wilson of My Housing Market reported national auction clearance rate of 58.3% at the weekend which was lower than the 60.9% reported last weekend and still well below the 78.2% recorded over same weekend last year.
This weekend's auction markets produced divergent results with most markets recording the highest clearance rates for months, however Brisbane and Canberra auction clearance rates tanked.
1335 properties were listed for auction, a few more than last weekend’s 1243 but, not surprisingly, this was well below the 1,551 auctions held on the same weekend last year.
With the media full of negative messages and the spectre of interest rates rising faster than many expected, discretionary vendors are losing confidence and not putting their properties up for auction.
Similarly, buyers are being cautious suffering from FOBI - fear of buying into this market.
Currently, we're finding more homes are being sold before auction as sellers rush to make a deal rather than risk not getting a sale as vendors are becoming less willing to test the marketplace under true auction conditions.
Other properties are being passed in at auction, but selling straight after on negotiation with the vendor post-auction. The auction clearance rate doesn't always reflect this.
Dr Andrew Wilson of My Housing Market reported a national auction market clearance rate of 58.3% at the weekend which was lower than the 60.9% reported last weekend and still well below the 78.2% recorded over the same weekend last year
Dr Andrew Wilson reported the following auction preliminary clearance rates for Saturday 6th August:
- Adelaide auction clearance rate - 85.9%
- Brisbane auction clearance rate - 40.6%
- Canberra auction clearance rate - 33.8%
- Melbourne auction clearance rate - 65.7%
- Sydney auction clearance rate- 65.7 %
Sydney auction results
The Sydney preliminary auction clearance rate was 65.7%; considerably higher than last weekend's 57.8% but, of course, this will be revised lower to around the high 50% as the remaining auction results are collected.
As has happened over the last few week, almost 40% of Sydney auction results have not yet been reported by the selling agents.
Last week the final clearance rate for Sydney as reported by Domain was 54.8%, a reflection of falling buyer sentiment in Sydney
Of the 553 properties listed for auction this weekend 96 properties were withdrawn from sale - a sign of the challenges the Sydney market is experiencing, and these are counted as "passed in" meaning this will bring down the overall auction clearance rate.
Realestate.com.au reported that there were 1,179 private sales in New South Wales over the last week - a few more than last week's 1,092. But, of course, many off-market Sydney property sales would not have been reported.
The following chart from Dr Andrew Wilson of My Housing markets shows the long-term trend of Sydney's auction clearance rate:
Dr Andrew Wilson's comments on the Sydney auction results
Another Dramatic Rise in Sydney Clearance Rates
The Sydney market rose sharply at the weekend recording its highest clearance rate since May and followed a similar surge a fortnight ago.
The sharp increase in the Sydney clearance rate came despite significantly higher listings and is signalling perhaps an early revival in the winter market.
Sydney recorded a clearance rate of 65.7% at the weekend which was well above the 57.8% recorded the previous weekend but still significantly lower than the 83.0% recorded over the same weekend last year.
Auction numbers were also well up on the previous weekend with 553 reported listed compared to 421 and now higher than the 472 auctioned over the same weekend last year – impacted by then covid lockdowns.
Sydney recorded a median price of $1,715,000 for houses sold at auction at the weekend which was sharply higher than the $1,470,000 recorded last weekend and 5.5% higher than the same weekend last year’s $1,626,250.
The Lower North recorded the top Sydney regional clearance rate on Saturday with 72.0% followed by the North West, South West and Upper North Shore each with 70.4%.
The West reported the lowest clearance rate at the weekend with 50.4%.
The clearance rate for houses was 65.3%, with units higher this weekend at 66.9%.
Melbourne auction results
Only 558 properties were scheduled for auction this weekend in Melbourne - clearly discretionary sellers are not putting their properties on the market.
However buyers are still out there, despite the rising interest rates and Dr Andrew Wilson's Auction Insider reported a preliminary auction clearance rate in Melbourne of 65.7 % (stronger than last weekend's 62.1%) but, of course, this will be revised lower to the high to mid 50% once the remaining auction results are collected.
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Last week the final clearance rate for Melbourne as reported by Domain was 55.6%
Interestingly only 43 properties were withdrawn from sale this weekend - significantly less than over the last few months. These are counted as "passed in" meaning this will bring down the overall auction clearance rate.
A further sign of the resilience of the Melbourne housing market is that Realestate.com.au reported that there were 915 private sales in Victoria over the last week (less than the 1030 in the previous week) and, of course, many off-market Melbourne property sales would not have been reported.
The following chart from Dr Andrew Wilson of My Housing markets shows the long-term trend of Melbourne's auction clearance rate:
Dr Andrew Wilson's commentary on the Melbourne auction results
Melbourne Weekend Auction Market Surges
Melbourne’s weekend auction market has continued to rise following last weekend’s bounce in buyer activity.
Auction numbers remain modest although reflecting typical subdued winter listings and exacerbated this year by wavering seller confidence.
Melbourne reported a clearance rate of 65.7% on Saturday which was again clearly above the previous weekend’s 62.1% and now similar to the 66.0% recorded over the same weekend last year – impacted by emerging covid restrictions.
558 homes were reported listed at the weekend which was similar to the 550 reported over the previous weekend but again well below the 1138 listed over the same weekend last year.
Melbourne recorded a median price of $990,000 for houses sold at auction at the weekend which was well ahead of the $968,500 reported last weekend but 8.8% lower than the $1,085,000 recorded over the same weekend last year.
Melbourne’s Inner East reported the top regional clearance rate on Saturday with 78.8% followed closely by the Inner South at 75.3% and the Outer East well behind this weekend at 70.9%. The Inner City recorded the lowest regional rate at 51.9%.
The house clearance rate was 67.7%, with units well below at 55.4%.
The following charts show the long-term trends in Auction clearance rates and the number of properties listed for auction.
Dr. Andrew Wilson commented...
Weekend auction markets produced divergent results at the weekend with most markets recording the highest clearance rates for months with others however falling dramatically.
National auction numbers bounced back at the weekend but reflected sharply higher listings in Sydney.
Top Brisbane auction results
Top Canberra auction results
Top Adelaide auction results
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