Looming rate hike fails to sink auction market

Cotality’s Property Market Indicator Summary for the week ending 15 March found that the number of auctions rose, while nationwide preliminary clearance rates remained solid.

The results came as the big four banks predicted that the RBA would lift interest rates by 25 basis points when it meets this week, and again in May.

The preliminary clearance rate for the combined capitals was the lowest so far this year, dropping to 66.6 per cent, but was higher than last week’s final result at 57.9 per cent, following a downward revision.

A total of 2,871 capital city homes were auctioned last week, a 58 per cent jump on the volume a week prior, which was disrupted by the long weekend.

Compared with the same week a year ago, the number of auctions was up 16 per cent, showing a continued trend of strong listings activity.

Melbourne recorded the strongest result for auction activity, with 1,389 homes going under the hammer, up 144 per cent on the week prior.

Out of the total auctions, 66.9 per cent have reported a positive result so far, down from 67.9 per cent the previous week (revised down to 52.6 per cent).

In Sydney, 1,000 homes went to auction, resulting in a 6.2 per cent rise from the week prior and for the second time this year, the volume of auctions has reached the 1,000 mark.

The preliminary clearance rate came in at 65.1 per cent, the lowest so far this year and well down from the week prior at 74.3 per cent (revised down to 58.6 per cent once finalised).

There were 190 auctions held across Brisbane last week, the city’s second-highest number of auctions so far this year, but the clearance rate was its lowest this year at 65.9 per cent.

In Adelaide, 155 auctions were held, a 45 per cent increase on the previous week and on par with the 155 held on February 1, the most so far this year.

With the preliminary clearance rate coming in at 84.0 per cent, the second-highest early result this year, Adelaide broke the trend of weaker clearance rates seen in the rest of the states.

Canberra saw 118 homes go to auction last week, more than double the volume a week earlier, which was affected by the Canberra Day long weekend.

As for the preliminary clearance rate, it sank to 55.4 per cent, down from 67.9 per cent the week prior.

In Perth, a total of 18 auctions were held, resulting in a preliminary clearance rate of 57.1 per cent, while only one auction was held in Tasmania.

This week, Cotality predicted a similar number of auctions, with about 2,900 homes scheduled to go under the hammer, and the number to surge leading up to Easter.