Data for the three months to September show that there has been an increase in both auction volumes and clearance rates across the combined capital cities.
CoreLogic’s most recent research has found that 14,216 homes went under the hammer across the combined capital cities over the September quarter, up from 13,783 over the previous quarter.
That being said, the figure remains lower than the corresponding period in 2019 when 16,730 homes were taken to auction across the combined capitals.
“Of the 13,917 auction results collected over the latest quarter, 18.7 per cent reported a withdrawn result, compared to 31 per cent over the June quarter. Of the sold results, 42 per cent were sold prior to auction, compared to 48 per cent over the June quarter,” CoreLogic’s research noted.
“The combined capital city auction clearance rate increased over the three months to September, returning a clearance rate of 59.2 per cent, up from 47.9 per cent over the June quarter, which was the lowest seen since the December 2018 quarter (43.6 per cent). The September 2019 quarter recorded a higher clearance rate of 69.9 per cent.”
Further, CoreLogic found that weekly clearance rates held above 60 per cent across the combined capitals during the month of September, with the highest weekly clearance rate recorded over the week ending 20 September (67.6 per cent). It’s worth noting, however, that September saw less auction volumes than July and August, largely a result of the subdued activity in Melbourne which experienced a stage 4 lockdown.
“The September quarter saw auction markets start to normalise after the COVID-related disruptions experienced through the June quarter. We saw a substantial reduction in withdrawn auctions and more auctions were sold ‘under the hammer’ rather than prior to the auction event, suggesting vendors were more willing to test to the market under auction conditions rather than accepting offers prior to the auction being held,” said Tim Lawless, head of research, CoreLogic.
“The improvement in auction market conditions through September was from an extremely low base, with the June quarter reflecting the weakest auction clearance rates since the final quarter of 2018.
“Although the headline results from the September quarter showed a significant improvement in national auction markets, the nation’s two largest auction markets, Sydney and Melbourne, moved in opposite directions towards the end of the quarter. While auction activity outpaced levels from a year ago in Sydney, the number of auctions held across Melbourne ended the quarter materially lower due to COVID related restrictions being imposed.
“With Melbourne emerging from lockdown, we are expecting the December quarter, which is typically the busiest auction period of the year, to be much stronger for auction activity. We are already seeing the number of auctions scheduled across Melbourne ramping up as pent-up demand to sell through the spring and early summer season is unleashed.”