Unseasonal uptick in auction volumes continues

By Duane Kaak, Research Analyst, CoreLogic Australia

The number of scheduled auctions across the combined capital cities is expected to record a further lift this week, up 16.7% week-on-week and bucking the seasonal trend. CoreLogic is currently tracking 1,796 auctions, a positive increase from last week’s results, which saw 1,539 capital city auctions held. Over the corresponding week last year, 1,812 auctions were held and a combined clearance rate of 51.9% was achieved.

Sydney’s auction activity is expected to increase to 736, with the city set to hold the highest number of auctions this week across the major markets. It’s a 21.5% increase from last week’s number of 606 auctions, and up 9.2% from the 674 auctions scheduled across Sydney at the same time last year.

The number of Melbourne dwellings going under the hammer is also set to increase slightly this week to 689 homes, up 6.0% on the 650 auctions held last week and down -3.0% on the 710 held over the same week last year.

Across the remaining major capital cities, Brisbane is recording the largest week-on-week increase with 172 homes scheduled for auction, up 67% on last week’s 103 homes. This increase is heavily supported by 29 properties being taken to auction at an in-room event on Saturday morning. Auction activity across Adelaide is also set to rise this week to 115 dwellings, up 12.7%, whilst Canberra activity increases to 67 this week, up ten auctions from last week. Perth is set to host 13 auctions this week and no auctions are scheduled in Tasmania this week.

Based on an early count of scheduled auctions, activity across the combined capitals looks likely to increase through the following week, with just over 2,000 homes scheduled to go under the hammer across the combined capitals. A further rise in the volume of auctions runs counter to the seasonal trend which is normally characterised by flat to falling auction volumes. The larger number of auctions will provide a timely test of the depth of demand from buyers.

There were 1,539 homes taken to auction across the combined capital cities last week, returning weaker week-on-week final clearance rate of 66.8%. This time last year, 53.0% of auctions were successful.

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