Auction Wrap Up – 22 October 2016
The spring selling season is truly under way, with a very strong clearance rate despite the highest number of listings since the end of April. Solid performance in both Melbourne and Sydney pushed the national clearance rate through 80 per cent to close at 82.5 per cent on the weekend. The national clearance rate last year was much lower, as the market was unable to absorb the growing number of auction listings.
Around the nation 2,082 properties were listed for auction, representing a 12 per cent increase from last week but a 17 per cent fall from this time last year. Volumes were higher in Melbourne but fell in Sydney.
Melbourne’s clearance rate was high for this time of the year, closing at 83.7 per cent. For comparison, the clearance rate was almost five percentage points above last week’s result and more than 13 percentage points above the corresponding week in 2015, proving that demand and supply are in close pursuit.
The strong clearance rate was surprising given a 21 per cent weekly increase in auction activity. The city recorded its fourth highest result for the year, with 1,201 properties listed for auctions. Activity, however, will fall next week for the pre-Cup weekend before gradually recovering in the ensuing two weekends.
Sydney’s auction clearance rate continued to rise, closeting at 84.4 per cent on Saturday. The figure was 20 percentage points above this time last year, while listing numbers declined by 20 per cent to 628. The clearance rate will be tested again next week when over 750 properties will go under the hammer in what is likely to be the 2nd busiest weekend of the year.
Listing numbers will continue to rise on the first weekend in November, with 800 properties currently expected to go to auction.
Auction Clearance Rates
Week ending 22nd October 2016