Sydney and Melbourne ease, clearance rates hit a 12-week high

The preliminary combined capitals auction clearance rate nudged up a little last week to 56.5%, its highest early success rate in 12 weeks. This came despite falls in the two largest markets, where Sydney eased 1.4 percentage points and Melbourne 3.4 percentage points. The gains were concentrated in the smaller markets, with Adelaide (up 15.1 percentage points), Brisbane (up 13.8 percentage points) and the ACT (up 14.1 percentage points) all moving higher.

For the second consecutive week, the combined clearance rate remained above 55%. This improvement is from a low base, having risen from a cyclical low of 47.4% in the week ending 21 June. Clearance rates remain significantly below the decade average of 68.0%. At this level, market values continue to decline, and buyers retain a stronger negotiating position.

There were 1,309 auctions last week, down 5.3% on the previous week and 31.9% on the same week a year earlier. Volumes are set to rise again, with about 1,420 homes scheduled for auction this week and around 1,540 next week.

Melbourne was again the busiest market, with 596 homes going under the hammer. The preliminary clearance rate eased to 57.4%, down from 60.8% a week earlier, while volumes fell 9.6% week on week and were 36% below a year ago.

A total of 425 homes went to auction in Sydney, up 3.2% from the week before but down 39.7% from the same week last year. The preliminary clearance rate eased to 55.6%, off 1.4 percentage points from 57.0%, a 15th straight week under 60% and well adrift of the 70.1% decade average.

In Brisbane, 145 homes went to auction, 9.9% fewer than the previous week but 6.6% above the same time last year. Just over half found a buyer, with the preliminary clearance rate at 51.9%. That was a 13.8-point rise from the previous week and the city's best early result in 13 weeks.

Adelaide's 88 auctions were down 6.4% from the previous week, yet 3.5% higher than a year earlier. The standout was the clearance rate, which reached 61.9%. That was up 15.1 percentage points from the week before and the strongest early figure since the week ending 7 June.

In the ACT, the preliminary clearance rate increased to 60.0%, surpassing this threshold for the first time since the week ending 12 May. The 45 auctions held were down 4.3% from the previous week and down 11.8% from the same week last year.

Perth held ten auctions, and Tasmania held none.