Winter school holidays have had a cooling effect on auction numbers with just 1,478 homes auctioned across the combined capitals last week, down -16.8% from the week prior (1,776).

The lower auction counts were accompanied by a -3.7 percentage point drop in the preliminary clearance rate, from 74.7% over the previous week (revised down to 66.5% on final numbers) to 71.0% last week. Despite the decline in the combined capitals success rate, results were mixed across the individual cities.

Sydney's preliminary clearance rate fell -7.8 percentage points, with 68.9% of the 547 homes auctioned returning a successful result.

This was a sharp turnaround from the previous week (76.7%, revised to 68.5%) when Sydney recorded its highest preliminary rate since early May. Last week was the first time Sydney’s preliminary clearance rate has fallen below the 70% mark this year.

In contrast, Melbourne recorded its second strongest early clearance rate of the year last week, with 73.0% of the 609 homes auctioned returning positive outcomes. The previous week's early success rate of 70.2% was revised to 60.9% at final numbers.

This was one of the largest revisions between the preliminary and final clearance rate so far this year; the average revision through the year-to-date has been -6.5 percentage points.

Across the smaller auction markets, preliminary clearance rates held relatively stable in Adelaide (84.9%) and Canberra (64.5%), up just 10 and 20 basis points, respectively. At the other end of the scale, Brisbane's early clearance rate fell from 78.9% over the previous week to 63.5% last week.

Auction activity is set to rebound this week, with just shy of 1,800 auctions currently scheduled across the combined capitals.

By Caitlin Fono, Research Analyst, CoreLogic Australia.

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