Resilient Clearance Rates Despite Higher Volumes - CoreLogic

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Jun 17, 2024

Resilient Clearance Rates Despite Higher Volumes - CoreLogic

By Caitlin Fono, Research Analyst, CoreLogic Australia.

CoreLogic

Clearance rates are looking resilient, despite higher volumes - CoreLogic

The number of homes going under the hammer rebounded last week following the previous week’s drop in auction volume due to the King’s Birthday long weekend in many states. 2,232 auctions were held, up from 1,317 the week prior and nearly 15% higher than at the same time last year.

The preliminary combined capitals clearance rate also bounced higher to 72.9%, the strongest early result since the first week of May (73.5%). The previous weeks preliminary clearance rate, which came in at 67.3% and revised down to 62.0% once finalised, was the lowest since late last year.

With 1,054 homes going under the hammer across Melbourne, the number of auctions held more than doubled relative to the previous week (488) and the preliminary clearance rate rose to 70.2%, the highest early result since the last week of May.

The volume of auctions rose to 795 in Sydney, up from 523 the week prior and 764 held at the same time last year. The preliminary clearance rate (75.0%) also showed some strength, rising to the highest level since the week ending May 12 (75.9%).

Brisbane led the volume across the smaller auction markets with 193 homes taken to auction, returning a preliminary clearance rate of 68.9%, followed by Adelaide with 118 auctions held and a preliminary clearance rate of 88.9%. 55 auctions were held across the ACT with an early success rate of 73.3%.

Despite the higher number of homes taken to market, clearance rates are looking resilient, suggesting demand is keeping up with the rise in vendor activity. The trend in auction markets lines up with the broader trend in new listings, where vendor activity was 9.5% above the previous five-year average, while overall stock levels were tracking 16.1% below the five-year benchmark, demonstrating a healthy rate of absorption.

At the same time, dwelling values continue to trend higher, with CoreLogic’s daily HVI rising a further 0.8% over the past four weeks across the combine capitals.

Full details including clearance rates and top sales of the week can be found in the attached Property Market Indicator.

By Caitlin Fono, Research Analyst, CoreLogic Australia