Despite the escalating health crisis and economic fallout related to coronavirus, this week was the 2nd busiest for auction activity so far this year with 2,539 homes taken to auction across the combined capital cities.

Clearance rates resulted in a preliminary figure of 61.3 per cent compared to last week's 65.3 per cent, which is still substantially higher than a year ago's 50.9 per cent when values were falling. 

This week’s preliminary auction results mark a turning point in buyer and seller sentiment, with withdrawal rates rising as vendors think twice about testing the market and buyers losing confidence or choosing to avoid public gatherings.

At a Glance:

• The withdrawal rate was 8 per cent on the weekend compared to the YTD average of 5 per cent 
• Preliminary clearance rate is 61.3 per cent this week, compared to 65. 3 per cent last week and 50.9 per cent this time last year.
• Long term average clearance rates 5 and 10 years ago were above 70 per cent.

Prior to this weekend, the year to date withdrawal rate across the preliminary reading was averaging around 5 per cent YTD across the combined capital cities, rising to just over 8 per cent on Sunday’s numbers.

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Source: CoreLogic

In all likelihood CoreLogic said we will see more vendors choosing to withdraw from the market until confidence and selling conditions improve.

It is likely that the preliminary auction clearance rate of 61.3 per cent will revise down to below 60 per cent for the first time since mid-2019 as remaining results are collected.

In comparison, the previous week saw 2,274 homes taken to auction returning a preliminary auction clearance rate of 70.6 per cent, before revising down to a final clearance rate of 65.3 per cent.

While the clearance rate has fallen, it remains stronger than this time last year when 1,667 homes were taken to auction and a clearance rate of 50.9 per cent was recorded.

The latest results highlight the housing market is being impacted by the social distancing measures and weaker confidence related to the coronavirus pandemic.

To date there is no evidence of reduced housing values, however it is clear that transactional activity maybe disrupted coming weeks and months.

The extent of this disruption depends on how long it takes to contain the virus and for sentiment to recover.

Melbourne

A clearance rate of 66 per cent was recorded from 932 auctions reported to the REIV, with 618 selling and 314 being passed in, 155 of those on a vendor bid. 

“Suburbs in Melbourne’s outer ring cleared about 69 per cent from 183 listings, higher than the state’s average of 66 per cent, as Craigieburn led the last week’s market with 11 out 14 listings sold under hammer," said REIV CEO Gil King.

"Aspendale, Epping, Roxburgh Park and Sydenham each sold all 4 homes through auction.

“Last week, a renovated Victorian residence was sold for $9,010,000 on 92 Page Street, Albert Park. This marks the suburb’s most expensive home sold through auction.”

Sydney

With a total of 923 auctions, Sydney experienced a clearance rate of 64.4 per cent.

Different agents have had varying experiences including McGrath Estate Agents, where CEO Geoff Lucas congratulated his team on LinkedIn.

"Proud of the McGrath Estate Agents team today on what was shaping as a challenging day," said Mr Lucas.

"With 104 auctions scheduled we’ve achieved a network clearance rate of 64 per cent (68 per cent in Sydney metro) with a thumping volume of $97.56m in auction sales.

"Compares very favourably to last week with 58 per cent and $87.62m and the same weekend last year with 53 per cent and $43.49m."

Richardson and Wrench Elizabeth Bay's Jason Doon had a successful result selling 111/95 Elizabeth Bay Road, Elizabeth Bay to an expat for $4,255,000, $750,000 above reserve.

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111/95 Elizabeth Bay Road, Elizabeth Bay sold on the weekend to an expat, $750,000 over reserve, through Jason Boon of Richardson & Wrench, Elizabeth Bay. Photo: Richardson & Wrench

Canberra

The capital reported a clearance rate of 65.1 per cent with 79 auctions.

Adelaide

In Adelaide there were 68 auctions and a clearance rate of 54.5 per cent.

Brisbane

The Sunshine capital had 105 auctions over the weekend but only 34.9 per cent sold.

Tasmania

With only 14 auctions held, Tasmania had a clearance rate of 33.3 per cent translating to only three sales.

Perth

Perth held 33 auctions with the lowest clearance rate of all at 23.5 per cent.

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