Boom in auction volumes after national clearance rate falls below 60%

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Despite falling clearance rates, vendors in Australia’s two biggest real estate markets are still showing no apprehension in taking their homes to auction.

According to figures from CoreLogic RP Data, the national clearance rate fell from 62.3% to 59.5% last week, which is the first time it has dropped below 60% in more than two-and-a-half years.

The fall in the national rate was driven by another round of poor results in Sydney and Melbourne, but there hasn’t been a fall in volumes as 3,815 auctions are scheduled for this week compared to the 3,166 held last week.

Melbourne and Sydney are expected to combine for more than 3,200 auctions.

Melbourne is by far the busiest market this week, with 1,890 auctions scheduled, up from 1,510 last week.

The Victorian capital recorded a clearance rate of 64.7% last week, down from the previous week’s 69.8%.

The result is Melbourne’s lowest since February of last year.

While last week was somewhat disappointing for Melbourne, the city did mark 11 straight weeks of its clearance rate being higher than Sydney’s.

Last week Sydney’s clearance rate finalised at 56.7% compared to the 58% recorded the previous week.

Sydney’s result was the lowest clearance rate since early February 2013 and came on a smaller number of auctions than what is scheduled for this week, 1,116 compared to 1,372.

The three busiest suburbs this week will be found in Melbourne, with Mount Waverley set to hold 30, Reservoir 29 and St Kilda 28.

Mosman will be Sydney’s busiest suburb with 20.

Despite a slight week-on-week dip, auctioneers in Brisbane are again set to be busy as the Queensland capital holds 219 auctions, compared to 226 last week.

Canberra has also seen a small decline in volumes, with 101 homes to go under the hammer compared to the 116 last week.

In Adelaide, volumes have increased over the week, up to 160 from 145.

It’s a similar story in Perth, with 58 auctions scheduled for this week after 40 last week.

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