Strongest quarterly auction clearance rate since the downturn: CoreLogic

Strongest quarterly auction clearance rate since the downturn: CoreLogic
Strongest quarterly auction clearance rate since the downturn: CoreLogic

Over the three months to September 2019, the clearance rate across the combined capital cities came in at near 70 per cent, the strongest quarterly clearance rate seen since the June 2017 quarter, according to the latest report from CoreLogic.

There were 16,730 auctions over the quarter, nearly 4,000 less properties going under the hammer compared to the September quarter 2018. The clearance rates over that quarter was down at 53 per cent.

There was a higher volume of homes in the June 2019 quarter (18,104), however the clearance rate was down at 55 per cent.

The clearance rates over the last seven weeks of the September 2019 quarter have been holding at or above 70 per cent.

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Strongest quarterly auction clearance rate since the downturn: CoreLogic

CoreLogic head of research Tim Lawless called the auction clearance rate lift remarkable.

"The September quarter has seen a remarkable lift in auction clearance rates, driven by consistently high results across the largest auction markets, Sydney and Melbourne," Lawless noted.

“The lift in clearance rates highlights a better fit between buyer and seller pricing expectations and some urgency creeping back into the market as a larger pool of buyers compete for a smaller than usual number of homes for sale.”

Although clearance rates are holding high in Sydney and Melbourne, the number of auctions held remains low, reflecting a slower start to the spring selling season.

“There is a strong likelihood that advertised stock levels and the number of scheduled auctions will progressively rise as spring progresses and vendor confidence lifts on healthier housing market conditions," Lawless added.

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Auctions Clearance Rate

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