Housing market recovery continues – CoreLogic

Auction activity reduced this week, with 1,530 auctions held across the combined capitals. The previous week saw 1,791 homes auctioned, while this time last year, 1,881 capital city auctions were held. The combined capitals recorded the lowest preliminary clearance rate since the week ending 30 April 2023 (69.2%), with 70.3% of the 1,138 results collected so far reporting a successful result. Last week’s preliminary clearance rate was 3.5 percentage points higher at 73.8% (revised to 68.6% at final figures), while this time last year, 53.2% of auctions held were successful.

There were 696 auctions held across Sydney this week, -3.9% less than the 724 held last week and -7.9% lower than the 756 auctioned this week last year. Of the 514 results collected so far, 71.2% were successful. The reduction in the preliminary clearance rate was driven by an increase in the portion of properties passed in at auction, from 9.7% last week to 13.2% this week, combined with an increase in the withdrawal rate from 11.9% to 15.6% this week. The previous week’s preliminary clearance rate was 7.5 percentage points higher at 78.7%, revised to 70.0% at final figures, while this time last year, just 49.9% of auctions reported a successful result.

Melbourne hosted 517 auctions this week, a significant -30.5% less than the 744 held last week. With 439 auction results collected so far, Melbourne’s preliminary clearance rate remained just above 70% as it has done for the past 12 weeks, at 70.2%. Last week’s preliminary clearance rate was 10 basis points lower at 70.1%, which revised to 67.5% at final figures. This time last year, Melbourne hosted 654 auctions and reported a clearance rate of 55.8%.

With roughly 1,450 auctions currently scheduled, capital city auction activity is set to reduce further next week by around - 5.2%, continuing the usual seasonal winter decline in auction activity.

All data to week ending 2 July 2023