National auction clearance rates cooling

National auction clearance rates cooling
National auction clearance rates cooling

Melbourne was host to 777 weekend auctions, with agents returning a preliminary clearance rate of 73.8 per cent.

It was the nation's second strongest capital city result, falling just short of Canberra's 73.9 per cent, according to CoreLogic.

Over the same weekend last year, Melbourne vendors secured a success rate of 51.8 per cent across 904 auctions.

Housing economist Dr Andrew Wilson noted Melbourne recorded a $790,000 median sale which was lower than the previous fortnight’s $812,000 but higher than the same weekend last year’s $738,750.

"With the spring holiday period now concluded, the Melbourne market will again be fully-focused over coming weekends until the Cup long-weekend holiday," Dr Wilson, from My Housing Market, said.

The top Melbourne sale was at Elwood. The modern home at 20 Docker Street (pictured top) fetched $3,075,000, up just $25,000 on the last sale price in 2016, according to CoreLogic.

The Marshall White price guidance had been $2.75 million to $2.9 million.

Melbourne's inner south was the strongest region with a 90 percent success rate.

A Wheelers Hill four bedroom, two bathroom home (below) sold for $1,247,000.
 
“The first bid was $1 million, and it shot up in $20,000 increments,” said the Ray White agent Crisitine Jones.

National auction clearance rates cooling

"Three months ago this property would have struggled to reach $1.1 million.”
 
The 21 Heysham Drive home saw six bidders taking part, with final bids between just two dropping as low as $500.

It last sold at $850,000 in 2009.

There were 1,324 homes taken to auction across the combined capital cities, slightly up on the prior week when 1,278 auctions were held.

National preliminary results show a clearance rate of 71 per cent, similar to last week’s final clearance rate of 71 per cent, but down on the 79 percent achieved in late August.

"As the remaining results are collected, it’s likely that the final clearance rate will revise below 70 per cent for the first time since mid-August," CoreLogic auction analyst Kevin Brogan said.

AMP Capital chief economist Shane Oliver suggested the recent "cooling" in clearance rates was expected due to the tight credit, the unit supply and soft economy that would "constrain prices after their initial bounce."

This time last year, 1,817 auctions were held across the combined capitals, while the clearance rate was significantly lower at 49.5 per cent.

With the school holidays, the NRL grand final and Queens Birthday long weekend, auction volumes across Sydney dropped with just 316 homes across the city over the past week.

Preliminary results show a clearance rate of 79.8 per cent.

There were 188 auctions in Sydney on Saturday, with just the 133 results captured and 110 sold so a preliminary clearance rate for Saturday of 82 percent.

Over the previous week, final results show 74.5 per cent of the 950 auctions were successful making it the busiest week the city has seen since November last year.

One year ago, 611 auctions were held across Sydney returning a final clearance rate of 46.1 per cent.

For the second week in a row, Sydney's top sale was at Warrawee when a five bedroom house (below) fetched $4,525,000.

The 21 Hastings Road homeKELVIN GROVE was a Federation home renovated by architect Harvey Little. Set on on 1,400 sqm, the home that sold through McGrath agent Alex Mintorn had a pool and court.

National auction clearance rates cooling

It last sold in 1996 at $1.39 million.

Cooley Auctions reported a 58 percent clearance rate with 11 of 19 selling, which was the weakest clearance rate for nine weeks. 

Across the smaller auction markets, Adelaide and Canberra saw lower auction volumes week-on-week while Brisbane and Perth saw an increase in the number of homes taken to auction over the week.

Canberra was the strongest of all market at 73.9 percent from just 31 auctions, with the dearest being just $835,000 at Flynn.

The four bedroom house at 11 Tulloch Place, Flynn was sold prior to auction through Irwin Property. It last sold at $137,500 in 1998.

The weakest market was Brisbane at 37 percent with 90 or so listings.

Brisbane had the nation's cheapest sale when 10 Woody Avenue, Kingston was sold at a big loss. Set within the Logan City region, the neglected three bedroom home fetched $226,000.

"Bring your tools and make this home shine again," the marketing advised.

It last sold at $315,000 in 2015 to Sydney investors who initially sought $460 a week tenants.

There were no auctions recorded in Tasmania this week.

 

 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Clearance Rate Weekend Auctions

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