Auction success drops below 70%

According to CoreLogic’s summary of real estate market indicators for the week ending December 5, 2021, more than 4,100 homes have fallen under the hammer.

It was widely predicted that the scheduled auction volume would see the week reach the title of the second busiest week for auctions since the record began in 2008, which came to fruition.

Higher auction volumes and a balance between supply and demand issues resulted in the preliminary clearance rate falling further to 69.9%.

A week earlier, for the week ending November 28, 2021, CoreLogic reported a preliminary clearance rate of 71.4% which was then revised to a final clearance rate of 68.5%, after a record week. for auction volumes, with 4,251 homes passed under the hammer.

Evidencing the strength of supply in recent times, this week’s auction volume was more than double that of the same period last year, when only 2,085 units were up for grabs.

Melbourne saw a slightly lower number of auctions as spring turned into summer compared to the week before.

With 1,889 homes up for auction, it won the title of third busiest week for auctions this year, with numbers slightly lower than the 1,910 reported a week earlier.

Melbourne’s results mirror the combined results of the auction – registering a preliminary approval rating of 69.4% out of the 1,558 results collected so far.

This pass rate increased from the previous week, when a preliminary clearance rate of 68.5% was recorded, which was subsequently revised down to 66.3% according to final figures.

Sydney also had an exceptional week for supplies. Turning to be the second busiest auction week for the New South Wales capital so far in 2021, Australia’s largest city has seen 1,467 homes auctioned.

Although lower than the 1,546 auctions that took place the week before, Sydney’s auction pipeline falls short of the 867 auctions reported during the same period in 2020.

Of the 1,249 results collected so far, 67.3% of suppliers were successful. This is the first time that the city has seen the rate of preliminary authorization drop below 70% since early September 2020.

For the last full week of November, CoreLogic reported Sydney’s preliminary clearance rate at 71.4%, which was then revised down to 67.2%, and marked the lowest final clearance rate. that the city has seen over all of 2021.

CoreLogic has revealed that the final clearance rate is likely to drop further this week.

Building on its momentum, Canberra recorded the highest preliminary clearance rate of any capital city, at 82.1% after 179 auctions.

This was followed by Adelaide, who was successful in 76.4% of the 298 auctions that took place.

A total of 273 auctions took place during the week in Brisbane, resulting in a liquidation rate of 74.6%, while just over 40% of PerthPerth, TAS Perth, WAAll 25 auctions were successful (43.5 percent).

CoreLogic previously noted five scheduled auctions to take place in Tasmania. Of these, only one has succeeded so far, out of the three results already reported.

RELATED TERMS

Real estate

Real estate is a type of real estate that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

Auction success drops below 70%



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Last updated: 07 December 2021

Posted: 08 December 2021