Preliminary Clearance Rate Shows 59.2 Per Cent Of Homes Sold At Auction

July 20, 2020English

Preliminary Clearance Rate Shows 59.2 Per Cent Of Homes Sold At Auction

July 20, 2020
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There were 1,167 homes scheduled for auction across the combined capital cities this week, down from 1,269 over the previous week, although higher than this time last year (896). Of the 938 results that have been reported so far, 59.2 per cent were successful, up from last week’s final clearance rate of 56.2 per cent, and lower than this time last year (65.4 per cent).

In Sydney, 512 homes were scheduled for auction this week, down from 566 over the previous week, although higher than one year ago when 303 homes were taken to auction across the city. Of the 411 auction results collected so far, 68.9 per cent were successful, although this will revise lower as the remaining results are collected. In comparison, the previous week reported a final clearance rate of 61.8 per cent, while a clearance rate of 72.8 per cent was recorded this time last year.

There were 499 auctions scheduled in Melbourne this week, similar to the previous week when 506 homes were taken to auction, and higher than the same week last year (410). Preliminary results show that of the 413 results collected so far, 47.5 per cent were successful, while 43.6 per cent were reported as withdrawn (compared with 15.1 per cent of Sydney auctions). As mentioned the previous week, the withdrawn numbers are not overly surprising given that Melbourne is currently in lockdown. The previous week saw a final clearance rate of 51.2 per cent, while this time last year, 67.5 per cent of Melbourne auctions reported a successful result.

With restrictions in place across Melbourne for another four weeks, we are likely to see more auctions being withdrawn from the market than normal, which will drag the clearance rate lower.  Excluding withdrawn auctions from the clearance rate calculation, and focussing purely on those auctions that proceeded shows a much higher 84 per cent ‘adjusted’ preliminary clearance rate, with the majority of these (55 per cent) selling prior to the auction rather than under the hammer or post event.

Across the smaller capitals, Canberra recorded a preliminary clearance rate of 90.6 per cent, followed by Adelaide at 64.3 per cent. Brisbane reported a preliminary clearance rate of 59.1 cent, while Perth had a 40.0 per cent success rate although volumes were low.

 

Source: CoreLogic