Period of low auction numbers coming to an end: RP Data's weekend auction preview

There are 1,726 auctions scheduled across Australia this week.

In capital cities there are 1,372 auctions expected compared to 1,441 for the same period last year. Based on previous years, this annual period typified by low auction volumes should be over by the end of the month.

The national clearance rate has been both stable over the past few weeks and in line with this time last year. Given the higher volumes this means more active buyers are in the market.

• In Sydney there are 486 auctions expected compared to 588 last week and 521 for this week last year. Last week’s clearance rate of 76.7% was the highest since March. The auction market is following the trajectory of last year which suggests a very competitive spring ahead for buyers.
• Brisbane is expecting 97 auctions after 96 last week.
• Adelaide is expecting 50 auctions compared to 95 last week.
• Canberra has 31 auctions scheduled compared to 28 last week.
• Perth has 25 auctions compared to 20 last week.
• There are nine auctions scheduled in Tasmania.

Across Australia, the highest number of auctions is expected in Malvern East, Balwyn North and Reservoir, each of which has 13 scheduled.

There are 673 auctions scheduled this week in Melbourne compared to 677 for the same time last year. Buyers are clearly in the market for capital gains, as yields remain low at 3.3% for houses; the lowest of all capital cities.

Low yields translate into good conditions for renters in many parts of Melbourne. Recently released rental market data showed that the median advertised rent for a house in Melbourne was stable in July at $447 per week and has risen by 2.4% in the previous twelve months.

This means that the median advertised rent for houses is not keeping pace with the CPI, 3.2% in Melbourne, for most relevant period. The comparable data for units showed a drop of a dollar a week to $397 over the month and an increase of 1.6% in the year. This reflects the adequate levels of supply in the higher density market.

The average time on market for houses sold last month rose from 44 to 46 days. Vendor discounting rose, but only slightly from -5% the previous week to -5.1% last week.

Key data for Melbourne

• Clearance rate week ending 3 August: 69%
• Melbourne auctions expected week ending 10 August: 673
• Melbourne private sales time on market week ending 3 August: 46 days (houses)
• Melbourne vendor discounting market week ending 3 August: -5.1% (houses)
• Listings being prepared for market are 0.7% higher in month ending 3 August (seasonally adjusted)