Clearance rates shrink during second-busiest week of 2021

CoreLogic researcher Kaytlin Ezzy reported that out of the 2,933 results so far, 75.5 per cent were successful, down from an all-time high of 84.4 per cent for the week ending 3 October.

The preliminary clearance rate was 76.1 per cent last week, but it was cut down to 73 per cent in final numbers.

These are still good figures compared to the 70.6 per cent success rate of the 1,728 auctions held this time last year.

This week, 1,556 homes were auctioned in Melbourne, up 11.3 per cent from the 1,398 homes sold the previous week. Melbourne’s preliminary clearance rate increased, resulting in 74.1 per cent of the 1,324 results collected so far and thus yielding a positive outcome. Last year at this time, 604 homes were auctioned, with a 69.7 per cent clearance rate.

The NSW capital was buzzing with activity as it had its second-busiest week of the year and its busiest week since late March.

There were 1,290 homes taken to auction this week. Last week, Ms Ezzy noted 1,239 homes went under the hammer, while this time last year, 840 auctions occurred.

The preliminary clearance rate in Sydney declined for the fifth week in a row, with 75.1 per cent of the 1,086 results recorded so far, and thus yielding a positive outcome.

Last week, a preliminary clearance percentage of 75.9 per cent was recorded, which was later lowered to 74.1 per cent, while this time last year, a clearance rate of 71.3 per cent was reported. With 13 per cent of properties withdrawn, Sydney has had its highest withdrawal rate since mid-August, according to the CoreLogic researcher.

Ms Ezzy highlighted Canberra and Adelaide, which saw their preliminary clearance rates fall below 80 per cent for the first time in nine and 10 weeks, with Canberra recording a 79.9 per cent clearance rate and Adelaide at 77.8 per cent. This came after both capitals reached their biggest auction volumes since CoreLogic records began in 2008.

Brisbane had an 80 per cent preliminary clearance rate, while 83.3 per cent of the 12 auction results announced thus far in Perth were successful.

Down in Tasmania, two of the five auctions held this week yielded a positive outcome.

CoreLogic predicts auction volumes to grow further in the second half of November due to a combination of increased supply and seasonal factors. Auction volumes have soared by 79.4 per cent since the first week of October due to the relaxation of lockdown restrictions in Sydney, Melbourne, and Canberra. Because of this, Ms Ezzy opined that it’s unlikely that auction numbers have reached their peak.