Auction activity is increasing – but are liquidation rates keeping up?

It was the busiest week for auctions since the Easter long weekend, with 2,847 homes going under the hammer, a big increase in activity.

While auction activity increased 38.3% from the previous week, the increase in activity failed to lift results, with preliminary clearance rates falling for the fourth week in a row .

The preliminary clearance rate of 64.6% recorded from 2,228 results collected so far surpassed last week’s preliminary clearance rate of 64.7%, the lowest recorded for the year.

In a sign of the times, every capital city reported a lower preliminary clearance rate than it had during the same period in 2021, except for Adelaide.

In Melbourne, there was a 40.1 per cent increase in auction activity from the previous week, with 1,268 homes under the hammer across the Victorian capital. A preliminary clearance rate of 64% means the city saw a decline of 60 basis points from the preliminary clearance rate of 64.6% the previous week.

Similarly, Sydney saw a 41.7% increase in auction activity over the previous week, with 934 auctions held across the city. A preliminary clearance rate of 61.1% means the port city is one of two capitals to report an increase in its preliminary clearance rate from the previous week.

Among other capitals, Adelaide recorded both the busiest week, with 234 auctions, and the highest preliminary clearance rate of 78.8%. A preliminary clearance rate of 76% across 127 auctions meant Canberra was the other capital to record an increase in its preliminary clearance rates from the previous week.

Additionally, 60.3% of Brisbane’s 235 auctions recorded a result, representing a 2.3 percentage point drop in the Queensland capital’s preliminary clearance rate. In Perth, six of the nine results collected so far have been successful, while Tasmania have not recorded any successful results so far for the week.