Auction market sinks to weakest level since COVID, clearance rates tumble
Capital city auction results have nosedived to depths not seen since the early days of COVID, with barely half of the homes taken to market securing a buyer.
Fresh figures from property analytics firm Cotality show just over half of homes up for sale across the capitals sold under the hammer or shortly after last week, cementing the weakest preliminary result since April 2020.
A crucial measure of Australia’s housing market has fallen to levels not seen since the early days of the pandemic. Peter Rae
The volume of successful sales came in at 51.1 per cent, down from 54.5 per cent the week prior.
Once final results were tallied, the earlier week’s figure dropped to 49 per cent, the first time the final combined capital city clearance rate has fallen below 50 per cent since May 2020.
Cotality economist Annabelle Mezieres said the subdued result came during a quieter auction week, with the King’s Birthday long weekend reducing the number of properties listed.
A total of 1182 homes went to auction across the capitals last week, down 55.5 per cent on the previous week and almost 14 per cent lower than the same time last year.
“The preliminary combined capitals result fell to 51.1 per cent last week, the lowest outcome since the week ending April 26, 2020,” Mezieres said.
Sydney remained Australia’s busiest auction market, with 491 properties going under the hammer, although activity was well down on recent weeks.
Sydney remained Australia’s busiest auction market, with 491 properties going under the hammer. Supplied
Auction volumes in the harbour city halved against the latest seven-day period and were 21 per cent lower than a year ago.
Its preliminary clearance rate edged up to 52.9 per cent from 51.8 per cent, though Cotality noted earlier figures usually soften once all auction results are reported.
While last week’s figures point to a cooling market, the quieter result is expected to be temporary. Getty Images/iStockphoto
Melbourne also recorded a weaker result, with the clearance rate dropping to 52.3 per cent, its lowest early reading since September 2021.
The Victorian capital hosted 422 auctions, a 67 per cent decline from the previous week.
Brisbane posted one of the worst performances in the country.
Despite not having a long weekend, auction numbers dropped 30 per cent to 138 properties, while the clearance rate sank to 31.9 per cent, the city’s lowest since May 2020.
Cotality projects auction activity to rebound this week, with around 2200 homes currently scheduled to go under the hammer Getty Images
Adelaide held 79 auctions last week, with a preliminary clearance rate of 64.2 per cent, the third-lowest result recorded there this year.
In Canberra, 36 homes were put up for auction. The early success rate lifted to 50 per cent after falling to a multi-year low of 39.1 per cent the week before.
Over in the west, Perth recorded 14 auctions, with 72.7 per cent reporting a successful result so far, while one of Tasmania’s two reported auctions closed a deal.
While last week’s figures point to a cooling market, the quieter result is expected to be temporary.
Cotality projects auction activity to rebound this week, with around 2200 homes currently scheduled to go under the hammer before easing back to fewer than 2000 the following week.
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