Auction clearance rates have strengthened in the past week, despite activity remaining below average year-on-year.
According to the latest CoreLogic research, the week concluding 17 May saw 400 capital city homes scheduled for auction, with preliminary results returning a 64 per cent clearance rate.
“The previous week saw 480 homes scheduled for auction and a final clearance rate of 59.9 per cent,” CoreLogic noted.
“One year ago, there were 930 homes taken to auction and a 55.2 per cent clearance rate. It is important to interpret clearance rates with caution given auction volumes remain substantially lower than usual.”
CoreLogic noted that one of Australia’s largest auction markets – Sydney – returned a preliminary clearance rate of 73.4 per cent this week, “suggesting the relaxation in social distancing policies specific to housing are having an immediate and positive impact on home auctions, although the number of auctions remains well down on last year”.
“In Melbourne, 118 homes were scheduled to go under the hammer this week. So far, 93 auctions have been reported, returning a preliminary success rate of 60.2 per cent. The previous week saw a final clearance rate of 56.5 per cent across 163 auctions,” CoreLogic said.
Looking ahead, CoreLogic said the number of homes falling under the hammer is likely to increase steadily over the coming weeks.
“As mentioned over the previous week, with restrictions easing across many states and territories, we will likely see the number of homes taken to auction increase in the coming weeks,” it said.