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While auction volumes remain low, withdrawal rates are beginning to normalise and are likely to continue to do so over the coming weeks, new research has found.
CoreLogic’s latest Property Market Indicator Summary has found that for the week ending 3 May 2020, 590 capital city homes were scheduled to auction.
Preliminary results returned a 59.6 per cent clearance rate.
“The previous week saw 413 homes scheduled for auction and a final clearance rate of 41.1 per cent, with the lower volumes likely due to Anzac Day commemorations,” the CoreLogic report said.
“One year ago, there were 1,479 homes taken to auction and a 52.5 per cent clearance rate.
“It’s likely the number of scheduled auctions will remain substantially lower than normal, at least until social distancing policies are lifted and on-site auctions can resume.”
As the nation adjusts to the flow-on effects of the pandemic, auction withdrawal rates are likely to normalise further going forward, according to CoreLogic.
“With fewer scheduled auctions, we are likely to see the withdrawn rate start to normalise, which is likely to have a positive flow-on affect to the clearance rate,” the report said.
“It has been dragged lower over the past month due to a surge in auction withdrawals, which are counted as unsold in the clearance rate statistics.
“As we’ve seen over the last few weeks, the number of auction results collected at a preliminary stage are lower than usual as we seek to confirm the status of scheduled auctions, so results should be interpreted with caution.”
An auction is a public event for the sale of assets and property to the highest bidder among a group of buyers.
Rates refer to a fixed price or an amount charged by sellers or providers for their goods and services.