High preliminary rates for May Auctions

In defiance of the easing trend usually seen this time of year, capital city auction numbers held firm this week, with 1,912 homes taken to auction across the combined capitals. While this week's auction numbers were fairly in line with the 1,921 held last week, auction activity was significantly higher this time last year (3,226) when the market downturn was just starting to gather momentum.

With 1,522 results collected so far, the combined capital's preliminary clearance rate (75.9%) rose 60 basis points this week, overtaking the week prior (75.3%, revised to 70.0% at final numbers) as the combined capital's highest preliminary rate since early November 2021 (76.1%). Over the same week last year, a final clearance rate of 59.3% was reported.

Across Melbourne, 858 homes went under the hammer this week, one more than the 857 auctioned last week but -41.9% fewer than the 1,478 held this time last year. Melbourne's preliminary clearance rate held above 70% for the seventh consecutive week, with 77.1% of the 708 results collected for far returning a successful result. Last week's preliminary clearance rate (74.4%), which revised to 69.6% at final figures, was 2.7 percentage points lower, while this time last year, 60.4% of auctions were successful.

Sydney was host to 708 auctions this week, down -5.2% from the 747 auctions held last week. The preliminary clearance rate inched 30 basis points higher this week to 78.5% (with 562 results collected). This week tied with the week ending 7th May as Sydney's highest preliminary clearance rate over the year to date and the highest rate since mid-February 2022 (79.6%). Improvement in the clearance rate was driven by buyer demand, with the portion of properties passed in at auction falling to 10.3%, while the withdrawal rate inched higher to 11.2%. Last week's preliminary rate of 78.2% was revised to 72.1% at final figures. Over the same week last year, Sydney hosted 1,109 auctions and a clearance rate of 56.4%.

The continued strength in the clearance rate is yet more evidence indicating the market has moved passed its floor. If selling conditions remain favourable, we could see more vendors testing the market this winter in hopes of beating the rush of listings come spring.

All data to week ending 28th  May 2023.

Source: CoreLogic