Sydney’s record-breaking early spring home auction market weakened at the weekend, reporting its lowest clearance rate for two months.
Domain Group senior economist Dr Andrew Wilson said the 79.3 per cent result broke a sequence of nine consecutive weekend rates above 80 per cent and may reflect the exceptionally high numbers of properties offered for auction at the weekend.
“A total of 747 homes were listed to go under the hammer at the weekend, which was the highest weekend offering since May,” he said.
“Although down on recent results the weekend rate nonetheless remains a strong outcome, with the Sydney market clearly remaining in favour of sellers with plenty of competition amongst buyers for available homes.
“Sydney’s four-weekend average clearance rate now stands at 82.0 per cent compared to 82.8 per cent over the previous four-weekend period,” he added.
The inner west continues the recent trend of reporting the highest suburban region clearance rate at the weekend also from the highest listings, with 89 auction sales from 100 reported results for a clearance rate of 89 per cent.
“Melbourne’s weekend home auction market tracked backwards for the second weekend in a row as signs emerge of waning buyer activity,” Dr Wilson said.
“Melbourne recorded a weekend clearance rate of 73.8 per cent, which was the lowest result reported for two months.
"This weekend’s result followed last weekend’s 75.8 per cent with a falling trend now developing.
“This weekend’s result brings the four-weekend average to 77.9 per cent compared to 77.4 per cent average for the previous four weekends,” he added.
High auction numbers may be a factor in declining clearance rates, with metro Melbourne this weekend hosting 903 auctions - well up on last weekend’s 740 and ahead of the 874 listed over the same weekend last year.
The outer east again produced the leading clearance rate of all the suburban regions at the weekend with an 82.6 per cent result from 86 listings.