Weekend auction clearance rates in Sydney, Melbourne down

Weekend auction conditions for sellers in the Melbourne market were good despite a lower clearance rate week on week.

Domain's Andrew Wilson said Melbourne recorded a clearance rate of 78.7 percent, lower than the 81.7 percent recorded the previous weekend but still well ahead of the 73.1 percent recorded over the same weekend last year.

"Although clearance rates and volumes were the lowest they’ve been for two months, so bullish is the Melbourne auction market that the weekend result was still a good one for sellers," he said.

"In a clear sign that sellers are making the most of conditions, 11,115 Melbourne homes were auctioned over the first four months of this year which was an increase of 15.1 per cent compared to the 9659 listed over the same period last year.

"On Saturday, Sydney recorded its lowest auction clearance rate of the year so far, at 73.6 percent. 

"In what could be an early sign of a weakening in the recent strong buyer activity, this is the second uncharacteristically low result in three weeks, following the previous low of 75.6 percent recorded on April 22nd.

"Saturday’s result was significantly lower than the 80.3 percent recorded the previous weekend but still remained ahead of the 71.6 percent recorded over the same weekend last year.

"It was inevitable that Sydney’s bullish auction market would hit a roadblock at some point."