Auction Clearance Rates - Sold to Listed - July 9th 2022
Auction Clearance Rates - Sold to Listed - July 9th 2022
Clearance rates continue to remain weak, pointing to further price falls
Please note the following is based off preliminary numbers and is subject to significant changes once unreported auctions are chased up.
It should be taken as an extremely rough and preliminary indicator, before other data sources fill in the blank later next week.
For those wanting more accurate data with the missing pieces filled in, that is posted here by the great team at SQM Research on Tuesdays.
Auction Action Summary
Another weekend of poor results for the Sydney and Melbourne markets consistent with ongoing price falls. Based on my data Sydney recorded its weakest preliminary result since December 2018, when pandemic impacted results are excluded.
Meanwhile, auction volumes were down 28.2% in Sydney when compared with this time last year. This is quite a significant drop considering that this time last year Sydney was spending its third week in hard lockdown.
In Melbourne auction volumes are falling even faster, down more than 45% compared with this weekend last year. While Sydney prices are currently falling faster than Melbourne’s according to Corelogic, if this weakness in the Melbourne market persists that may change further down the road.
TLDR: Auction markets remain weak despite falling volumes
Now that we have had a few months worth of data points post the first rise in interest rates, a trend is emerging. On a 4 week moving average basis auction clearance rates are down significantly from where they were prior to the RBA raising rates.
While this is naturally just preliminary data and the SQM figures will provide a more concrete measure of the market next week, its clear that the market is not in strong shape.
Meanwhile, on the ground in Sydney, Twitter user ParraPower is also noting a weak auction market. ParraPower posts a weekly roundup on the auctions he attends or monitors. His commentary can provide some interesting insight into the current mood of the market.
Last weekend at News.com.au, I wrote a piece on how the Australian property market was in worse relative shape than New Zealand’s in terms of how they sat before rates started to rise and how they fared in the immediate aftermath. You can have a read of this article here.
This graph is a bit of preview of what the article has in store.
Q&A
Why are these numbers different to those provided by Corelogic or Domain?
This data is based upon the percentage of scheduled auctions that resulted in a sale of the property as of the time of the initial reporting by agents on Saturday evening.
The data from Corelogic and Domain is based upon the number of successful auctions divided by the number of auctions reported by agents and other property industry figures.
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