Both Sydney and Melbourne’s auction markets fell at the weekend, with Sydney recording the lowest clearance rate in three months.
According to Domain Group senior economist Dr Andrew Wilson, the 78.9 per cent result – although still strong – was nonetheless the second time in three weekends the clearance rate has fallen below the boom-time benchmark of 80 per cent.
“The Sydney market reported nine consecutive weekend clearance rates above 80 per cent from the start of August to the beginning of October,” he said.
“Record-high auction listings may be a factor however in recently falling clearance rates as supply catches up with buyer demand.
“753 homes went under the hammer in Sydney on Saturday which was the highest total recorded since May,” he added.
Dr Wilson said Sydney’s inner west regained its usual mantle as the leading region this weekend following last weekend’s unusually low result with a strong 85.4 per cent clearance rate – and from the highest volume of activity with 88 sales from 103 reported results.
“The south followed close behind with 84.5 per cent with next the lower north at 81.8 per cent, the north west and the northern beaches each with 81.3 per cent, the west 77.8 per cent and the south west 76.2 per cent.”
The Melbourne weekend home auction market recorded a solid result on the weekend despite falling below last weekend’s outcome.
“The clearance rate of 75.4 percent, although below last weekend’s 76.4 result, was nonetheless positive with record numbers of properties going under the hammer spoiling buyers for choice,” Dr Wilson said.
“1,558 homes were listed for auction in the Melbourne metro area in Saturday, which is the all-time record for any day for home auctions and well ahead of the previous record set over last year’s pre-Melbourne Cup holiday weekend, Super Saturday, with 1,365 auctions.
“The falling trend in clearance rates may reflect the recent surge in auctions with October clearly breaking the all-time record for listings for that month,” he added.
Melbourne’s outer east reported the highest regional clearance rate at the weekend with a strong 85.2 per cent result.
Next best was the inner south with 82.5 per cent with the most number of sales with 170 from 206 reported auctions, followed by the south east with 80.5 per cent , the north east, 79 per cent, the inner east with 75 per cent and the north with a clearance rate of 74 per cent.