Clearance rates reach an eleven-week high as auction volumes decline

The preliminary clearance rate across the combined capitals rose to 55.1% last week, the highest in eleven weeks, after a low of 47.4% for the week ending 21 June. Despite this improvement, clearance rates remain well below the decade average of 68%.

This improvement is mainly due to fewer auction withdrawals. Last week, only 16.2% of auctions were withdrawn before the event, the lowest proportion since late April. By comparison, 23.7% were withdrawn during the week ending 21 June, when the clearance rate was at its lowest.

Fewer vendors are choosing to sell by auction. In late March, auctions accounted for approximately 40% of new capital city listings, but by the first week of August, this had declined to about 26%.

The volume of auctions across the capital cities totalled 1,388 last week, up 10.4% on the week before. That was still 12.5% below the same time last year, the twelfth week running under year-earlier levels.

Nearly half the national total came from Melbourne, where 654 homes went to auction, up 17% on the week though still 11.9% below a year ago. At 60.8%, the preliminary clearance rate cleared 60% for the first time since the week of 24 May, up from 59.6% a week earlier.

In Sydney, 421 properties went to auction, 3.7% more than the previous week but 24.3% fewer than a year ago. The clearance rate rose to 57.0%, the highest in four weeks and well above 49.7% a week earlier.

163 properties went under the hammer in Brisbane, up 19.9% on the week and 31.5% higher than this time last year. Fewer of those found a buyer, with only 38.1% of auctions reporting a successful outcome, 3.9 percentage points down on the previous week's 42.0%.

Among the smaller capitals, Adelaide's preliminary clearance rate fell to 46.8%, its lowest in five weeks. Auction volumes remained steady, with 94 auctions, 2.2% above the previous week but 5.1% below last year. Perth held nine auctions, while Tasmania had none.

Auction activity is expected to remain steady, with approximately 1,320 auctions scheduled this week and about 1,380 the following week.