Spring auction volumes reached their lowest level since 2020

Last week, 1,781 auctions were held, 46.9% higher than the week prior (when volumes were lower due to the long weekend in most states), but 31.2% fewer than a year ago. Challenging selling conditions have weighed on vendor activity this spring, with auction volumes over the first six weeks of the season 31.2% below the same period last year. You would have to go back to 2020, when pandemic lockdowns were in full swing, to find a quieter start to the season.

For the second consecutive week, the combined capitals preliminary clearance rate held below 50%. The result of 48.8% was a slight increase on 48.2% the previous week, and similar to results through mid-to-late June, when the preliminary clearance rate fell as low as 47.4%.

The preliminary clearance rate in Melbourne rose to 54.8% last week, up 4.2 percentage points from 50.6% the previous week. Melbourne also held more auctions than any other capital city, with 707 homes going to auction. This was a 6.2% increase on the previous week, although auction volumes remained 43.4% lower than the same week last year.

Melbourne’s auction volumes are set to fall sharply this week, down approximately 34% on last week, as the first auctions subject to Victoria’s new reserve price disclosure requirements take place. It's too early to tell whether the new laws are influencing seller behaviour. The timing suggests some vendors may have brought campaigns forward or delayed auction decisions as the industry adjusts to the new rules.

Following a long weekend that reduced activity the previous week, Sydney’s auction volumes increased by 118% to 653 homes. Compared to the same period last year, auction volumes across the city declined by 33.9%. The preliminary clearance rate decreased by 2.8 percentage points to 52.9%, marking the lowest result in ten weeks.

In Brisbane, auction volumes increased substantially, with 201 homes brought to market. This total was 45.7% higher than the previous week, which included a long weekend, and 58.3% higher than the same week last year. Only 21.4% of these auctions resulted in a successful sale, reducing Brisbane’s preliminary clearance rate to its lowest level since April 2020, during the initial phase of the COVID-19 pandemic.

Across Adelaide, the preliminary clearance rate rose to 46.8%, from 41.5% the previous week. Twice as many auctions were held as the week before, 140 compared with 70, and auction volumes were 45.8% higher than a year ago.

Last week, 66 auctions were held across the ACT, 127.6% more than the week prior but 37.7% down on the same week last year. Of these, 36.4% had reported a successful result at the time of the preliminary count, the second-lowest preliminary clearance rate this year.

This week Cotality is expecting around 1,500 auctions to be held, roughly 15% fewer than last week. Sydney is the only market where the number of scheduled auctions is higher, up approximately 8%.