There were only 735 properties taken to auction across the combined capital cities this week, significantly less than last week when 923 auctions were held, and less than this time last year (1,044).
The combined capital city preliminary auction clearance rate was recorded at 64.6{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} across 449 auction results reported so far, slightly higher than last week’s preliminary result which later revised down to 57.3{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc}.
This time last year saw a final clearance rate of 68{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc}.
Melbourne:
In Melbourne, 124 homes were scheduled for auction this week, down from 223 over the previous week and 545 this time last year.
The number of auctions held across Melbourne decreased sharply through the lockdown period and can only be conducted on line.
The sales that occur most likely reflect inspections that occurred before the lockdown.
With no inspections allowed anymore in metropolitan Melbourne, auctions are likely to peter out over the next weeks.
Interestingly the withdrawal rate has been much lower relative to the previous lockdown period in April and early May this year.
The preliminary data collected indicates 31{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} of Melbourne auctions were withdrawn from the market this week, compared with a peak of 65{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} through the second week of April.
Of the 64 Melbourne auction results collected so far, 60.2{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} were successful, although this will be revised lower as the remaining auction results are collected.
Last week saw a final clearance rate of 60.8{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} recorded across the city, while this time last year, 69.3{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} of Melbourne auctions were successful.
Realestate.com.au reported that there were also 883 private sales in Melbourne this week, significantly fewer than the number sold last week (1,254) and the 1,262 properties sold by private treaty the week before. But that’s not surprising considering Melbourne is in Lockdown.
Sydney:
The harbour city was host to 523 auctions this week, down from 580 over the previous week but considerably more than the 375 Sydney properties put to auction this time last year.
Of the 330 Sydney auction results collected so far, 65.9{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} have returned a successful result.
Last week, a final clearance rate of 57.4{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} was recorded for Sydney, while one year ago, a success rate of 72.3{c8b66c61d036f6ef577ebb4000d6f98acefd4039e69613ab9f29a3541d0a44dc} was achieved across Sydney.
Realestate.com.au reported that there were also 1465 private sales in Sydney this week, more than the number sold last week (1,254) and the 1,262 properties sold by private treaty the week before.
Here are the preliminary auction clearance rates as reported by Domain
As always these will be lower by mid week when the auction results that are not yet reported are taken into account.
However in this time of market flux the exact figures are really meaningless.
The following charts from Corelogic showing the market trends were updated in the middle of last week, and will be updated on this site on Monday 17th August once the results are reported.
The following charts from Corelogic indicate the prevailing trends.
Sydney real estate auction trends
Sydney Auction commentary by Dr. Andrew Wilson, Chief Economist, My Housing Market:
Sydney’s auction market continue to produce encouraging results for most sellers over July despite concerns over rising coronavirus cases and reports of a weakening local economy.
Auction clearance rates have however been impacted over recent months by an unusually high numbers of withdrawals which – as these are counted as non-sales – have acted to push down headline rates.
Initially, restrictions on open air auctions in April and May was the catalyst for the significant number of withdrawals of scheduled home options during that period.
However high levels of with drawls have persisted over recent months likely reflecting the emergence of the new online auction marketing technique – a hybrid conversion of typical private treaty listings.
This emergence is also reflected by significantly higher number of properties listed his options compare to the same period last year – despite generally we can market conditions indicated by other comparative measures such as price growth.
The prospects for the Sydney housing market remain positive heading into the typically robust spring selling season with prices set to remain steady overall.
Government stimulus packages will provide a Philip for the Sydney economy which remains the top capital city performer and will benefit from new policies directly particularly to 1st homebuyers.
Much will depend naturally on continued local control of the coronavirus, but certainly the Sydney market continues to exhibit its resilience.
The following charts from Corelogic shows the weekly trend in Sydney auction clearance rates over the last decade.
Melbourne real estate auction trends
Melbourne Auction commentary by Dr. Andrew Wilson, Chief Economist, My Housing Market:
Melbourne’s auction market declined sharply over July as a result of the re-introduction of coronavirus restrictions.
Sharply falling clearance rates however reflected a higher number of withdrawals as the bans on open air auctions impacted selling decisions with results predictably similar to April when a similar scenario occurred.
Withdrawals are counted as non-sales which act to push down clearance rates, however Melbourne clearance rates have since bounced back as withdrawals fell sharply.
The short term prospects for the Melbourne housing market are now clearly a hostage to the severe coronavirus lockdown policies current for at least the next six weeks.
Although the local market continued to perform reasonably over recent months despite constraints, this is a whole new ballgame – particularly in regard to the economic consequences of the shutdown.
The following chart from from Corelogic shows the auction trends over the last decade and how Covid hamstrung the Melbourne property market this year.
Comments by Dr. Andrew Wilson
Home auction markets continued to produce solid results for most sellers this weekend.
And the Melbourne market again performed solidly despite the severe coronavirus lockdown conditions now in force – although listings were predictably low.
Oliver said Volumes low, especially in Melbourne.
Melbourne clearance rates likely reflect inspections that occured pre Stage 4 Lockdown and are likely to slow to crawl.
Sydney auction rates are soft. Still in twilight zone with government & bank supports.
Expect lower prices as unemployment, lower rents & immigration impact.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
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Weekend auction markets still turning over nicely – yes Melbourne too