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Just 2,015 homes went under the hammer over the week ending 5 November 2023.
The latest data from CoreLogic has showed the lead-in to Melbourne Cup has caused a decline in spring activity, as the racetrack heats up.
While last week’s Super Saturday saw 3,381 homes go under the hammer, a 40 per cent drop in activity meant just over 2,000 homes were up for grabs over the week, with the biggest decline seen across the Melbourne marketplace.
According to Kaytlin Ezzy, economist at CoreLogic, Melbourne saw its quietest auction week since the start of October – when public holidays had an impact on auction volumes.
All in all, the combined capital clearance rate did hold steady in spite of the lower volumes – at 68.6 per cent at the preliminary count. It’s up 10 basis points on last week’s preliminary figure, which sat at 68.5 per cent before revising down to 62.9 per cent.
But even so, Ms Ezzy pointed out that confidence did fall among sellers while rising among buyers – the combined capital withdrawal rate rose to double digits at 12.4 per cent, up from 8.1 per cent a week prior. The portion of properties passed in at auction fell to 19 per cent.
In Melbourne, as already mentioned, activity “plummeted” -73.7 per cent last week.
Ms Ezzy explained that many vendors across the city chose not to compete with the commencement of Melbourne Cup activity.
It meant the city’s results sat in stark contrast to the week prior, when Melbourne recorded its busiest auction week since mid-April 2022, with 1,795 homes up for grabs.
While auction activity was down, so too was buyer confidence, with the city’s preliminary clearance rate falling to its lowest point since easter at 57.6 per cent.
Sydney led the charge for the last week, hosting more than half of the nation’s total auctions.
With 1,065 homes looking to find buyers, the preliminary clearance rate rose 1.1 per cent – putting the rate at 71.9 per cent from 842 results so far.
Adelaide also had a big weekend, hosting its busiest auction weekend of 2023 to date.
A total of 181 homes went under the hammer, which did push the -10.3 per cent decline in the preliminary clearance rate, which was still the strongest across the country at 74.8 per cent.
Elsewhere, 150 auctions in Brisbane saw a slightly higher preliminary clearance rate of 68.6 per cent, while Canberra’s lift to 144 auctions also improved the city’s results to 67.7 per cent.
In Perth, just three auctions were successful of the eight results that had already been reported, while none of the four auctions that took place in Tasmania found buyers.
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