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Last week’s auction market preliminary results show a promising recovery from weak results in late 2023.
CoreLogic reveals the capital city clearance rate rose to 76.2 per cent in the week ending 11 February, recording the highest preliminary clearance rate since the first week of June last year.
It’s also a lift from last week’s revised clearance rate of 68.3 per cent.
CoreLogic research director Tim Lawless said the latest figures could be attributed to “a boost in sentiment as expectations of an earlier than expected interest rate cut become more widespread”.
“The newfound strength in auction markets is a radical turnaround from the December results last year, where the preliminary capital city clearance rate fell to the mid-60 per cent range while final clearance rates dropped to the mid-50 per cent level,” he stated.
Adelaide tallied in with the highest preliminary clearance result at 86.2 per cent. It was a substantial rise to this time last year, when just 70.7 per cent of auctions found buyers. It’s also markedly higher than the final clearance rate of 74.1 per cent recorded the week prior.
Across the major capital cities, Sydney saw an 80.4 per cent preliminary clearance rate, up from the previous week’s final clearance rate of 70.6 per cent and the highest preliminary result since the week ending 24 October 2021.
The capital city also saw a 15 per cent rise from this time last year’s final clearance rate of 65.7 per cent.
Top performing areas with the highest clearance rates across Sydney included: Blacktown (87 per cent), South West (90 per cent), North Sydney and Hornsby (87.8 per cent) and Inner South West (87.5 per cent).
With 618 homes going under the hammer, Melbourne just beat out Sydney for the highest number of auctions for the week. It recorded a preliminary clearance rate of 73.1 per cent, off the back of the week prior’s final clearance rate of 67.1 per cent.
The Melbourne regions that saw the highest preliminary clearance rate were the Inner East and North East, sitting at 85.4 per cent and 81.6 per cent respectively.
Reflecting on the results, Mr Lawless said that based on the volume of auctions and the high clearance rates that have kicked off 2024, “it looks like the year has started with a much better fit between buyer and seller pricing expectations”.
Continuing last week’s performance trend, very few capital cities and subregions have seen a preliminary clearance rate below 60 per cent.
Overall, Canberra is the only capital city sitting below the 60 per cent mark at 59.1 per cent.
The three subregions with a preliminary clearance rate below the 60 per cent mark are: Newcastle and Lake Macquarie 55.6 per cent, Geelong 44.4 per cent, and Mornington Peninsula 37.5 per cent.
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