Auction markets sag under a surge in listings

Clearance rates in Sydney and Melbourne continue to be weighed down by an unprecedented late spring surge in listings.

In Sydney, 1,058 homes went under the hammer, which was well ahead of last weekend’s 874 and just behind the all-time record of 1,111 set earlier this year over the pre-Easter Saturday.

According to Domain Group senior economist Dr Andrew Wilson, this weekend’s result of 74.6 per cent, while higher than last weekend’s 73.5 per cent, was nevertheless the fourth consecutive weekend result below 80 per cent.

“The current four-weekend average clearance rate has fallen below 75 per cent to 74.5 per cent, which is well down on the 80.4 per cent average recorded over the previous four-weekend period,” he said.

“High auction numbers will continue to test a sagging Sydney market, with December set to follow the previous four months and set an all-time auctions record for the month.”

Dr Wilson said Sydney’s popular inner west bounced back over the weekend, reporting the highest clearance rate at 81.8 per cent and highest number of sales at 81.

“Next best region was Canterbury-Bankstown with 78.4 per cent, followed by the lower north shore at 77.9 per cent, the upper north shore 77.3 per cent, the northern beaches 76.6 per cent and the city and east at 76.3 per cent with 74 sales,” he added.

Melbourne’s result of 67.2 per cent was almost identical to last weekend’s year-low result of 67.1 per cent.

Dr Wilson said Melbourne’s four-weekend average clearance rate has now fallen below 70 per cent, and at 69.5 per cent is well down on the previous four-weekend average of 76.4 per cent. 

“A flood of late spring auction numbers continues to elevate supply in the marketplace,” he said.

“This weekend, 1,325 properties were listed for auction, well up on the previous weekend’s 1,152 and similar to the 1,341 auctions conducted over the same weekend last year.

“December will set a record for auction numbers for that month, with unprecedented early summer listings fully testing sagging buyer levels,” he added.

Melbourne’s outer east suburban auction market recorded the highest clearance rate at 73.9 per cent.

Next highest at the weekend was the inner south, with a rate of 71.4 per cent and the highest sales at 109, followed by the inner city at 67.3 per cent, the south east and north both at 66.7 per cent, the north east 66.1 per cent, the inner east with a surprisingly low 65.5 per cent, and the west with 61.3 per cent.

 

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