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A total 71.8 per cent of capital city auctions recorded a successful result over the week ending 3 March 2024.
CoreLogic’s latest Property Market Indicator Summary for the week ending 3 March 2024 showed that while clearance rates have softened slightly since early February, success rates are still a far cry from 2023.
Last week’s preliminary clearance rate, from a total 2,556 auctions, was a slight drop from the 73.5 per cent preliminary clearance rate recorded the week prior, but “remains well above late last year when preliminary clearance rates were in the mid-60 per cent range and finalised results were settling in the mid-50 per cent range,” reported CoreLogic Australia research analyst Caitlin Fono.
Fono said the that with an average downward revision of -5.9 per cent so far for 2023, the final clearance rate will likely come in around 65–66 per cent.
Comparing the latest results to the results seen in late 2023, Fono said the stronger clearance rates of late coincide with a reacceleration in value growth.
Just last week, CoreLogic’s Home Value Index reported a quickening pace of growth across both January and February.
While the current trend in auction clearance rates does appear conducive to further value growth, Fono said that “if clearance rates continue to ease we could see some momentum leave the reacceleration”.
Melbourne and Sydney both saw a 0.5 per cent drop in the preliminary clearance rate over the most recent week compared to the week prior, with Sydney’s preliminary clearance rate sitting at 76.8 per cent from 878 auctions, while Melbourne’s sat at 70.1 per cent off the back of 1,283 auctions.
Up in Brisbane, 148 homes went under the hammer, leading to a clearance rate of 65 per cent.
Adelaide saw 138 homes go up for grabs via auction, recording a preliminary clearance rate of 69.4 per cent, while Canberra’s 101 homes that went under the hammer resulted in a clearance rate of 63.8 per cent.
With results from two of Perth’s three auctions reported, it’s preliminary clearance rate is up at 66 per cent, while the results from Tasmania’s two auctions remain to be seen.
Looking to the week ahead, CoreLogic expects the volume of auctions will “drop sharply” due to long weekends across four of Australia’s eight state and territories. Even so, the research firm is expecting 1,700 homes to go under the hammer.
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