CoreLogic’s Quarterly Auction Market Review shows 23,087 properties across the combined capitals went under the hammer in the September quarter, the lowest figure since the March quarter in 2021.

Numbers were down on the three months to June when 31,439 auctions were held, which followed the busiest March quarter on record when 23,748 homes went under the hammer.

CoreLogic Research Director Tim Lawless said lower auction volumes were indicative of weaker consumer sentiment and fewer overall listings in the market nationally.

“Lower auction volumes are another indicator of the rapid change in market conditions as sellers also adjust to increasing interest rates and fewer buyers,” Mr Lawless said.

“We’re also seeing similar trends across new supply of ‘for sale’ stock in general. Seasonally, spring is usually the peak time for sellers to list their property but this hasn’t materialised, with the majority of cities and rural areas yet to see the normal seasonal upswing in freshly listed properties hitting the market.”

Auction clearance rates were also weaker with 56.4% of reported auctions successfully sold under the hammer in the three months to September 2022, the lowest quarterly clearance rate since June 2020 (47.9%) when the initial phase of COVID related lockdowns were implemented.

The results were down 15.2 percentage points from the same period last year (71.7%) and on the June quarter, when 60.8% of reported auctions were successful.

“Clearances rates have been falling each quarter just as the rate of growth in property values has slowed,” Mr Lawless said.

“The combined capital city clearance rate hit a record peak of 80.0% in March 2021 and has gradually declined ever since. However, the monthly trend in clearance rates has shown a consistent rise in auction clearance rates, with the weighted average capital city clearance rate firming around 60% each week in September. It will be interesting to see whether clearance rates continue to hold as we move through what is traditionally the busiest quarter of the year.”

Of the capital cities, Adelaide recorded the highest clearance rate this quarter (67.7%), followed by Tasmania (58.8%), Melbourne (58.5%) and Canberra (57.5%), noting the volume of auctions in Tasmania is extremely low.

Sydney recorded a clearance rate of 55.0% over the quarter, while Brisbane (43.9%) and Perth (38.8%) both came in under 50.0%.