- Preliminary clearance rate is up by 50 basis points.
- This is the first time in five weeks that the number of homes heading to auction dipped.
- The value of Australia's housing market has hit $10T again.
The second week of spring saw 2,285 homes head to auction, a mere one home down from the week prior, according to CoreLogic data. This represents the first weekly decline in auction activity in five weeks, but remains significantly higher than last year’s 1,918 homes under the hammer.
Preliminary clearance rates rise
The early clearance rates across 1,725 results collected so far (capital cities) indicate the first rise in clearance rates in three weeks. The preliminary clearance rate rose 50 basis points from last week to 71.7%.
CoreLogic’s Kaytlin Ezzy noted that buyers drove the change, with the portion of properties passing in at auction falling to its lowest rate (19.1%) since mid-March 2022 (18.7%).
“The vendors were a little more bearish, with the withdrawal rate rising 1.9 percentage points to 9.5%,” Ezzy said.
Preliminary auction data for capital cities
|City||Auctions held||Change from the prior week||Preliminary clearance rate|
Sydney recorded a marginal fall in auction activity and clearance rates, hosting six fewer homes, and seeing preliminary clearance rates fall by 40 basis points.
Melbourne recorded its third consecutive week of over 1,000 homes heading to auction, four up on last week. CoreLogic noted that it was the highest preliminary clearance rate for the Victorian capital in three weeks.
“With just shy of 2,450 auctions currently scheduled across the combined capitals this week, this year’s spring selling season is shaping up to be significantly busier than last spring,” said Ezzy.
“The clearance rate will continue to be an important indicator of whether the market can absorb the additional supply.”
Australian house values hit $10T again
According to CoreLogic data, the value of Australia’s residential real estate sector has hit $10 trillion again, after previously reaching the mark in June 2022.
This was the result of higher values and a growing number of homes; median values across Australia hit $732,886, with the number of dwellings reaching 11 million properties.
For comparison, the Australian superannuation sector is worth circa $3.5 trillion, listed stocks are $2.9 trillion, and commercial real estate is worth $1.3 trillion.
In the three months to July, CoreLogic figures recorded a 2.5% increase in national home values, with the 12 month change just 1.1%; annual growth is predicted to flatten out towards the end of the year.