Clearance rates lift to three-week high but the 55% ceiling holds

The preliminary auction clearance rate rose 1.1 percentage points last week to 53.6%, continuing a trend of improvement from the June low of 47.4%. It was the highest preliminary clearance rate in three weeks, though the tenth in a row where the rate held below 55%.

A lower withdrawal rate contributed to the improvement. At 19.7%, withdrawals remain above last year's average of 11.8% but have declined from the recent high of 23.7% in the week ending June 21st.

Nationally, 1,273 auctions were held, down 10% week on week and 19.2% lower than at the same time last year. It was the eleventh straight week where volumes fell short of year-ago levels, reflecting lower vendor activity and the likelihood that fewer sellers chose to go to auction while clearance rates remained so low.

Melbourne continued to outpace Sydney on clearance rates, with 59.6% of auctions clearing compared with 49.7% in Sydney. It was Melbourne's highest preliminary clearance rate since the week ending May 24th (60.2%). The city also recorded a substantially lower withdrawal rate: 15.7% of scheduled auctions were pulled from the market, compared with 28.3% in Sydney. 572 auctions were held, down 19.4% week on week and 21.6% lower than a year ago.

Sydney held 407 auctions, a 4.5% decrease from the previous week and 28.7% below last year's level. The preliminary clearance rate fell to 49.7% after reaching 56.1% the week before.

Auction volumes increased in Brisbane, with 139 auctions held, representing a 5.2% rise from the previous week and an 8.6% increase compared to the same period last year. The preliminary clearance rate in Brisbane rose to 42.0%, surpassing 40% after remaining below that threshold for six of the past eight weeks.

Auction activity across Adelaide eased over the week, with 92 homes taken to auction, down 8%. However, volumes were still 9.5% higher compared with a year ago, while the city maintained a 52.6% preliminary clearance rate.

Auction activity strengthened across the ACT, where 53 homes went under the hammer, up 42% from 37 the week prior. Despite the weekly increase, volumes were 3.6% lower than a year ago, while the territory’s result fell 9.2 percentage points to a 43.9% preliminary clearance rate. Across the smaller auction markets, Perth recorded ten auctions, while Tasmania recorded none.

This week, approximately 1,400 homes are scheduled for auction, with about 1,300 expected next week.