Auction activity across the capitals trended higher for the second consecutive week, with 2,056 homes auctioned. Up 6.6% from the 1,929 auctioned the previous week, the week marked the combined capital's busiest auction week since before Easter and the fifth busiest week of the year-to-date.

The increase in auction numbers was met with an increase in buyer activity, with six of the seven capitals recording a week-on-week increase in the preliminary clearance rate. At 74.0%, the combined capitals recorded the highest preliminary clearance rate in six weeks, with 1,549 results collected so far. Last week's preliminary clearance rate was 2.7 percentage points lower at 71.3% (revising to 64.7% at final figures), while last year, 1,816 auctions were held, and a final clearance rate of 58.8% was reported.

Sydney narrowly beat out Melbourne as the country's busiest auction market, with 839 auctions held. The city's busiest week since early April, auction activity was 9.7% higher than the volume seen the previous week (765) and 31.3% above the 639 held this time last year. With 631 results collected so far, Sydney recorded its highest preliminary clearance rate since late June (78.7%), with 77.5% of auctions recording a positive result. Despite the rise in the preliminary rate, Sydney's withdrawal rate rose to 12.2% this week, while the portion of properties passed in at auction fell to 10.3%. The previous week's preliminary clearance rate was 2.5 percentage points lower at 75.0%, while this time last year, 59.1% of auctions reported successful results.

Melbourne was the only city to see a decline in week-on-week auction activity, with 838 homes taken under the hammer, down from 877 the previous week. After dropping below 70% last week (69.5%, revised to 60.6%), Melbourne's preliminary clearance rate rose 3.2 percentage points to 72.7%. With 699 results collected so far, this week's preliminary rate was the city's highest in five weeks. This time last year, 60.8% of the 779 auctions held across Melbourne were successful.

Brisbane was the busiest auction market among the smaller capitals for the second consecutive week, hosting 155 auctions, followed by Adelaide (116) and Canberra (91). Canberra was the only capital to record a week-on-week decline in its preliminary clearance rate, falling -6.2 percentage points to 62.3%. Adelaide saw 76.2% of its auctions record a positive result, while 69.0% of auctions held across Brisbane were successful. Results for eight of the 16 auctions held in Perth this week have been collected so far — five have recorded successful results. The one home scheduled for auction in Tasmania this week was sold prior to auction.

Clearance rates will continue to be tested next week, with almost 2,400 homes currently scheduled for auction across the combined capitals.

By Kaytlin Ezzy, Economist, CoreLogic