- Auction clearance rates are down 2%, as are volumes
- First time houses have dipped below 80% clearance rate this year
CoreLogic data has shown that both the volume and clearance rate on capital city homes to auction last week was down slightly last week.
2,041 capital city homes were taken to auction with 1,642 results collected as of yesterday that have revealed a preliminary auction clearance rate of 78.5%. This is down 2% on last week’s figure when 2,467 properties were auctioned with a preliminary rate of 80.5% that was later revised down to 78.6%.
The figures, however, are significantly higher compared to this time last year amid the first wave of the pandemic – only 413 auctions took place with 41.1% of these properties selling.
Note: SQM Research calculates its auction clearance rates differently to CoreLogic
Houses and Units
Houses continue to outperform units with this type of dwelling recording final clearance rates over 80% for consecutive weeks. Last week was the first time houses have dipped below 80% for some time with 79.6% of houses being recorded as sold. Units had a clearance rate of 74.7% this week.
Earlier today, The Property Tribune reported CoreLogic’s Tim Lawless hinting that property prices may be cooling – especially given the historically positive correlation between pace of dwelling value increases and the clearance rate.
Among the capital cities, Canberra recorded the highest clearance rate at 97.3% with a median price of $850,800. Next was Sydney at 82.1% for a median of $1.36 million followed by Melbourne at 76.1% for a median of $910,000.
For sub-regions, Sydney’s Inner West recorded a clearance rate of 92.1% while Newcastle and Lake Macquarie enjoyed an 85.2% clearance rate.