Hot winter market drives clearance rate boom

Sydney’s auction market continues to rise with its late winter revival, while Melbourne’s market fades.

Domain Group senior economist Dr Andrew Wilson said Sydney recorded a “boom-time” clearance rate at the weekend of 80.4 per cent.

“This is higher than the 79.1 per cent recorded last weekend and the highest rate reported since early April,” he said.

“The Sydney weekend auction market has clearly been in revival mode over the past five weekends with average clearance rate over that period rising to 78.3 per cent compared to just 74.1 per cent over the previous five-weekend period.”

Dr Wilson said although auction clearance rates are on the rise, auction listings have flattened over recent weekends. 

“This weekend 434 auctions were scheduled in Sydney compared to the previous weekend’s 416 and the 404 listed over the same weekend last year,” he said.

Sydney’s north west recorded an extraordinary 92.3 percent clearance rate at the weekend as the best performer of all the Sydney suburban regions.

This was closely followed by the inner west with 90.7 percent, the south at 85.7 percent, the upper north shore with 84.3 percent, the city and east at 81.8 percent, the northern beaches with 81.3 percent and Canterbury Bankstown with a clearance rate of 80 percent.

Dr Wilson said Melbourne’s weekend auction market retreated at the weekend recording its lowest clearance rate since early July.

“The 72.7 per cent result was below the previous weekend's 75.6 per cent rate and just higher than the 71 per cent recorded over the same weekend a year ago,” he said.

“Although this weekend’s weaker result broke a trend of rising clearance rates over the past month, the rate was nonetheless another relatively solid result for a market that has proven particularly resilient not only over winter but also for most of the year.”

Dr Wilson said a moderation in clearance rates may reflect higher listing numbers at the weekend with 624 homes auctions scheduled compared to the 528 auctioned the previous weekend.

Melbourne’s inner east again recorded the best result of all the suburban regions at the weekend with another strong clearance rate of 83.3 percent.

This was closely followed by the outer east with 82.4 percent and the north with 81.3 percent. Next best was the north east with 77.8 percent and the inner south with 69.7 percent

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