Auction Clearance Rates - Sold to Listed - July 23rd 2022
Clearance rates continue to remain poor, pointing to rapidly falling prices
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
This week was a historic one for the Sydney auction market for all the wrong reasons. Excluding public holiday weekends which are distorted by extremely low volumes and weekends impacted by various lockdowns, Sydney recorded its lowest preliminary clearance rate since this data series began back in 2018.
This comes in spite of reports on the ground at auctions that vendors are accepting significantly lower prices prior to auction in order to ensure their property gets sold.
In Melbourne, things were pretty much the same as they were last week, another poor result consistent with home prices continuing to fall.
Meanwhile, auction volumes in Sydney were in the same ballpark as last year, which is no great achieve considering the city had spent a month in lockdown at this time last year.
In Melbourne auction volumes are down 44% compared with this weekend last year.
TLDR: Market conditions were already poor, but are slowly deteriorating further
On a 4 week moving average basis since the RBA cut rates, both Melbourne and Sydney recorded new lows as their respective markets continue to deteriorate.
Featured Aussie Property Twitter Content Of The Week
With so much great Twitter content on the Aussie property market every week, I thought it would be interesting to include some of the best of it here to provide a bit more perspective on the broader market.
This weeks pick comes from Twitter user Adelaide Property Drops. Earlier this week they put together a fascinating graph of falling Adelaide auction clearance rates.
Its worth noting that different Australian cities have a different baseline equilibrium for clearance rates in terms of when prices are expected to fall or rise based on that result. For example, Melbourne’s baseline clearance rate is significantly higher than Sydney’s.
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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