Half of auctions fail to sell as volumes continue to fade

The preliminary auction clearance rate declined to 50% last week, down from 54.8% the previous week. However, this outcome was stronger than the sub-50% results seen across the three weeks from June 15th to July 5th. This steadier result was partly due to a lower withdrawal rate of 20% in the preliminary data. Previously, nearly a quarter of auctions were withdrawn, which negatively impacted earlier clearance rates.

Auction volumes remained low, with 1,365 auctions last week. While this was a 4.7% increase from the previous week, it was 12.6% below the same week last year. After exceeding prior-year levels through mid-May, volumes have now trailed last year for nine consecutive weeks. Reflecting weaker market conditions, new listings are falling nationally, and fewer of these properties are being sold via auction (with vendors favouring private treaty sales instead).

Melbourne was the busiest city last week, with 599 homes up for auction, up 4.0% on the week before but 10.7% fewer than a year ago. Its early clearance rate rose slightly to 56.5% from 56.2%, the strongest preliminary result in five weeks.

Sydney held 444 auctions last week, unchanged from the previous week and 24.1% below last year. Here, the preliminary clearance rate fell sharply to 47.4%, having stayed above 50% for the prior two weeks, leaving it just above the recent low of 47.3% from the week ending June 28.

Among the mid-tier capitals, Brisbane's clearance rate remained weak. The city saw 163 auctions, up 25.4% on the previous week and 5.8% above last year, but only 35.9% sold, down from 43.0% a week earlier. That said, this was still ahead of the 23.8% clearance rate from three weeks ago.

In Adelaide, 108 homes went to auction, up 28.6% on the previous week and 25.6% higher than the same week last year. Adelaide’s preliminary clearance rate slipped to 54.9%, from 59.1% the week before.

Canberra held 42 auctions, down 30% from the previous week and 25% from a year ago. The preliminary clearance rate was 27.8%, its weakest early reading since March 2019.

Perth held eight auctions and Tasmania had one.