Auction market catches cold

The mid-winter chill has blanketed the auction market, causing clearance rate results to shift down a gear.

Over the weekend, Sydney recorded an auction clearance rate of 72.7 per cent, which was a slight increase from last week’s result of 71.2 per cent, but down from 74 per cent from the same week last year, according to Australian Property Monitors (APM).

Domain Group senior economist Dr Andrew Wilson said activity in Sydney’s home auction market has shifted down a gear over recent months with weekend clearance rates averaging 74.6 per cent over June compared to the 77.6 per cent averaged over both May and April, and the 82.3 per cent averaged over March.

“Sydney’s weekend auction market has commenced the new financial year with yet another decline in the weekend clearance rate,” he said.

“The 72.7 percent recorded was the lowest result for over a year with the trend clearly on the wane as the mid-winter chill arrives,” he added.

According to APM, Melbourne recorded a 71.4 per cent auction clearance rate, down from last week’s result of 72 per cent and up from the same week last year, which recorded a 65.3 per cent clearance rate.

Dr Wilson however said Melbourne’s weekend auction market continues to record solid mid-winter results.

“Auction numbers will decline over July when compared to previous months this year, but will remain atypically high for winter particularly when compared to last year,” he said.

“Low interest rates will keep home buyer activity ticking over with clearance rates set to remain above those recorded over the same time last year,” he added.  

Adelaide recorded a 66.7 per cent clearance rate over the weekend, up from 61 per cent the previous week and 56.3 per cent the same week last year, APM stated.

Brisbane also recorded an increase with a clearance rate of 57.7 per cent, up from 37.3 per cent the previous week and 43.5 per cent the same week last year. 

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