Liquidation rates decline as auction volumes hold up

According to the latest figures from CoreLogic, 3,276 properties have gone under the hammer in the combined capitals of Australia. While this is down from 3,546 homes the week before, the week was still hailed as the third busiest auction week of 2021 so far.

The clearing rate has slowly declined over the past two weeks, despite high auction volumes. With 2,620 auction results to date, the combined capitals registered a preliminary clearing rate of 76.1% this week, down from the recent high of 83.2% reported for the week ending October 3 .

The preliminary clearance rate is already lower than the reported final clearance rate for the last week of October of 76.8%, a slight drop from the initially reported clearance rate of 78.9%.

But, that’s still a far cry from the 69% auction liquidation rate reported during the same time frame in 2020, when just 1,757 homes were put under the hammer.

Sydney’s weekly auction volumes have increased by around 50% since restrictions were eased in the second week of October. Nonetheless, customs clearance rates have steadily declined over the same period, but removal rates have increased. These measures are expected to continue to decline as the housing supply increases in the market.

With 1,228 homes for sale this week, Sydney had its biggest auction week since March and the second of the year. The previous week, 1,151 properties were auctioned, up from 851 auctions in the same period last year.

Sydney’s 1,046 results gave it a preliminary approval rating of 75.9%. The previous week, the preliminary clearing rate was 79.3%, which was reduced to 76.6% in final figures, while 73.3% of reported auctions were successful in the same period of the year. last.

In Melbourne, 1,395 properties were auctioned, down from 1,752 auctions the week before, but an increase from the 611 auctions held around the same time last year.

Melbourne reported 1,127 auction results, its lowest preliminary clearance rate since the second week of September, with just 72% of auctions giving a positive result. The preliminary clearance rate for the previous week was 77.4%, but it fell to 75.2% in final figures. Around the same time last year, 68 percent of auctions were successful.

Canberra had the best preliminary clearance rate of 91.4% among the smaller auction markets, followed by Adelaide at 85.8% and Brisbane at 84.7%.

PerthPerth, TAS Perth, WA had a preliminary clearance rate of 50 percent, out of just 16 auctions. Four results have been obtained from the five auctions that will take place this week around Tasmania, with three of the results successful.

Liquidation rates decline as auction volumes hold up



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Last updated: 09 November 2021

Posted: 09 November 2021