This weekend’s auction clearance results Saturday December 18th – Big final day sees results slide

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Auction clearance rates slid again this weekend,  especially in our two big auction capitals Sydney and Melbourne, finishing off a remarkable year of auctions.

But I wouldn’t read to much into the lower clearance rates…just yet.

It’s common for auction clearance rates to ease over the concluding weeks of the year, driven down by higher listings providing more choice for buyers at a time when buyer interest typical slows just before Christmas.

And all the news about a possible new wave of Covid would not have helped.

This weekend 2,981 properties were scheduled for auction. This was considerably less that last weekend’s record of 3630.

Clearance rate have been slipping over the last few weekends, especially  in our two big auction markets – Sydney and Melbourne, however the markets were still relatively strong, the peaking of the property price boom cycle seems to be a factor now, with listings trending up and higher property prices pushing some buyers out of the market as affordability and borrowing restrictions come into play.

Online House Auction

Dr. Andrew Wilson of My Housing Market reported Adelaide as the stand-out performer with a preliminary auction clearance rate of 92% from 180 auctions.

Other preliminary clearance rates (as reported by Dr. Andrew Wilson’s Auction Insider) were:-

  • Brisbane– 82.7%
  • Canberra – 75.2%
  • Melbourne – 66.3%
  • Sydney – 63.8%

Sydney auction commentary:

On the last auction weekend for this year, Sydney hosted 1026 auctions.

As a result of the extra choice available, the preliminary auction clearance rate was 63.8% and, of course, this will be revised lower to around the high 50%’s as the remaining auction results are collected. 

Last week, a final clearance rate for Sydney as reported by Domain was 58.2%.

This weekend 266 properties that were planned to be auctioned this weekend were withdrawn from sale – a sign of the abundant choice.

Realestate.com.au reported that there were also 1,727 private sales in New South Wales over the last week, quite a few more than the 1,632 private sales reported the week before; and of course, many off-market sales would not have been reported.

Dr. Andrew Wilson commented:

Sydney clearance rates down again as supply finally catches up with demand.

The Sydney auction market reported a record day for the final Saturday of the auction year, with the recent unprecedented flood of listings acting to bring down clearance rates as supply finally catches up with demand.

Sydney recorded a clearance rate of 63.8% on the weekend which is the lowest Sydney clearance rate since May 25, 2019.

Sydney recorded a medium price of $1,580,000 for houses sold at auction at the weekend which was lower than $1,707,500 reported on the super Saturday last weekend, but 38.4% higher than the $1,172,000 recorded over the same with you last year.

The clearance rate for houses were 66.6% with units lower at 55.3%.

The following chart from Dr. Andrew Wilson of My Housing markets shows the Sydney auction clearance trends:

Sydney Auction Trends

Sydney Region Auction Results

 

Melbourne auction commentary:

In Melbourne 1,480 properties were scheduled for auction this weekend – significantly less than the previous weekend’s all time record of 1,766

This caused the preliminary auction clearance rate in Melbourne to slip to 66.3% and, of course, this will be revised lower to the low 60%’s once the remaining auction results are collected.

Last week the final clearance rate for Melbourne as reported by Domain was 59%.

Only 209 properties were withdrawn from sale this weekend – a sign of the strength of the market; and these are counted as “passed in” meaning this will bring down the overall auction clearance rate.

Realestate.com.au reported that there were also 1461 private sales in Victoria in the last week; much the same as the previous week’s 1447

Dr. Andrew Wilson commented:

Stunning record auction day in Melbourne

Melbourne’s weekend auction market has entered the air by reporting the highest number of listings for the final auction Saturday of the season, with 1480 homes scheduled for auction.

The previous record of 1320% on 16 December 2017.

Clearance rates predictably eased as a consequence of the unprecedented listings, but remain generally in favour of sellers.

Melbourne recorded a medium price of $1 million of the weekend which was lower than the $1,112,500 recorded over the previous Super Saturday weekend, but 8.3% higher than the $923,000 recorded over the same weekend last year.

The house clearance rate was 67.3%, with units lower at 62.2%

The following chart from Dr. Andrew Wilson of My Housing markets shows the long term trend of Melbourne’s auction clearance rate:

Melbourne Auction Trends

Melbourne Region Auction Results

 

 

Here are the preliminary auction clearance rates as reported by Dr. Andrew Wilson

Remarkable 2021 Auction Year Closes with More Record Results
The record-breaking 2021 weekend home auction year has concluded with more unprecedented results as a deluge of end-of-year listings engaged local markets.

Extraordinary auction numbers however have continued to place downward pressure on clearance rates generally, with buyer power on the rise, particularly in Melbourne and Sydney.

 

Auction Results 18th DecemberRemarkable 2021 Auction Year Closes with More Record Results
The record-breaking 2021 weekend home auction year has concluded with more unprecedented results as a deluge of end-of-year listings engaged local markets.

Extraordinary auction numbers however have continued to place downward pressure on clearance rates generally, with buyer power on the rise, particularly in Melbourne and Sydney

 

Auction Clearance Trend

Auction Listing Trend

 

 

Auction markets are remaining resilient despite the higher number of properties put to auction this weekend.

Strong underlying buyer appetite continues to be a positive force underpinning our property markets.

 

The following charts from NAB and Corelogic also show the long-term auction clearance rate trend for our combined capital cities.

 

 

Weekly Auction Clearance Weekly Auction Total


NOW READ: This week’s Australian Property Market Update

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Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au


'This weekend’s auction clearance results Saturday December 18th – Big final day sees results slide' have 18 comments

    Avatar for Michael Yardney

    July 21, 2020 Michael

    Do you know where the final auction results are published. I can only find the totally misleading preliminary results.

    Reply

      July 21, 2020 Michael Yardney

      The final results are published on both Domain’s and realestate.com.au websites on a Thurday

      Reply

    Avatar for Michael Yardney

    May 31, 2020 James

    Hi Michael, can you help explain the preliminary auction clearance rates that get reported by Domain each week?

    Using Sydney’s figures as an example.

    Total 367
    Confirmed: 219
    Sold: 166
    Withdrawn: 49
    Passed In: 53
    65% from (166/[166+49+53]) or 166/268 = 61.9%

    I understand how the % has been calculated but what happened to the other 99 properties? It’s almost 30% of the results not being reported?

    Then looking back at Domains previous weeks they are the same
    23rd May – The results say 67% but missing 60 (24%) of the results
    16th May – 75% but missing 58 (38%) of the results
    09th May – 68% but missing 49 (34%) of the results

    When do the figures catch up and are no longer ‘preliminary’ results?

    If 30-40% of the results are never included, whats the point of tracking it?

    Reply

      June 1, 2020 Michael Yardney

      You are right James and that’s why these are marked as preliminary auction results and final auction results are released on Thursday each week when many of the unreported sales are taken into account.
      That’s why I have suggested in my commentary that auction clearances will end up significantly lower than those initially reported

      Reply

    Avatar for Michael Yardney

    March 1, 2020 Steve

    Hi Michael,
    I have a Sydney investment property on the Northern Beaches worth approx $2M, with $1M in equity. Am i better off to sell it and use the $1M of equity to buy multiple properties in other states / locations to diversify, spread risk and increase the chances of capital growth and cash flow?
    I already have another Sydney investment property worth similar, so pay a hefty land tax bill every year.
    Regards
    Steve

    Reply

      March 1, 2020 Michael Yardney

      I understand your concern, no one likes paying land tax, it is a wealth tax but it is also necessary part of becoming wealthy through Real Estate. You should see my land tax bill:-)

      I can’t answer your question without a lot more information, but this is exactly what we do as part of our modelling when we build a Strategic Property Portfolio plan for our clients. It takes into account your time frames, the capital growth of your current property, the potential capital growth of other properties, the costs involved in buying and selling and over what time period you would make a bigger profit. You can read more about our service here. Why not book in for a time delivers build a Strategic plan for you plan for you

      Reply

    Avatar for Michael Yardney

    December 16, 2019 Cheshire Fili

    Hi Michael, what are your thoughts on Dualdwelling properties and the rental guarantees that some agencies offer. pros and cons pls.
    Thanks in advance

    Reply

      December 16, 2019 Michael Yardney

      Steer clear of them they must be terrible investments for the developer to nee dto offer you this type of incentive.
      There is SO much written about this on the internet – I’ll do an article on this as well – but I’m glad you asked – don’t even consider either

      Reply

    Avatar for Michael Yardney

    November 24, 2019 Raj

    Hi Michael, would you help people from NZ to invest in the residential property or your services are only limited to Australians?
    Thanks Raj.

    Reply

    Avatar for Michael Yardney

    October 7, 2019 Shirley Lee

    Hi Michael
    Thank you very much for your insight!
    I am looking for an apartment in Clayton for investment with a budget of $550,000. I plan to rent it to the students in Monash University. Do you consider it as a good investment?
    Please give me some comments!
    Shirley

    Reply

      October 7, 2019 Michael Yardney

      Shirley – Clayton is not on my radar and students are not the best tenants – that’s a good budget – you could do a lot better

      Reply

    Avatar for Michael Yardney

    September 29, 2019 Trish Walls

    Are there any statistics collected or reported for the Gold Coast anywhere?

    Reply

    Avatar for Michael Yardney

    September 2, 2019 Jeff Wright

    Thank you for this regular information re Auctions and auction clearance rates.
    But why do you continually leave Perth out !?

    Reply

      September 2, 2019 Michael Yardney

      Jeff becuase of the very few auctions occuring in perth – the main providers of statistics don’t report Perth auctions

      Reply

        Avatar for Michael Yardney

        February 2, 2020 Jason

        HI Michael,
        With a total purchase of $3 million in Sydney, how many properties would you recommend with this budget and purchase for each (ie $1 million each for 3) and would you stick to apartments only?
        Thank you

        Reply

          February 2, 2020 Michael Yardney

          Jason. It really depends on your circumstances, your investment goals etc. At that budget you couldmeither buy a block of apartments or 2 houses

          Reply


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