Spring auction success on the rise in Adelaide and Brisbane: CoreLogic
Spring is seeing a lift in the Brisbane and Adelaide auction markets, according to CoreLogic's latest weekly report.
Outside of the traditional biggest two cities for spring auctions, Melbourne and Sydney, there are far fewer auctions to measure. However, CoreLogic said that both the long-term trend line and short-term appreciation since the beginning of spring in Adelaide and Brisbane stands out.
CoreLogic's Cameron Kusher said that "across the smaller cities, auction activity has increased significantly over the week in Adelaide, Canberra and Perth while it is lower in Brisbane". The trend line for Brisbane has been more pronounced over a longer period of time, the uptick in auction success since the winter months is particuarly noticeable.
While spring is typically a time where more properties go under the hammer, this does not always lead to a rise in auction clearances.
"Spring is typically characterised by a fairly significant upswing in stock for sale, this is driven by the belief that spring is the best time of year to sell (that is a topic for another day)," said Kusher.
"As supply increases, the value growth performance can slow and as we saw last year, auction clearance rates can actually start to dip."
The longer term trends in auction success are also noticeable. In Adelaide, five years ago an auction clearance rate of less than 40% was typical, while now the clearance rate has nearyl doubled and is nudging 80%.
The Queensland capital shows similar gains, with a 20% clearance rate the norm five years back, while now the trend line hovers around 50%.