Auction volumes continue to drop as seasonal slowdown takes hold
A decline of -11.3% in capital city auction activity is on the horizon for the upcoming week, as 1,588 homes are expected to be auctioned, according to new projections from CoreLogic. That’s down from the 1,791 properties that went under the hammer last week.
This includes 78 homes up for auction Friday, the final day of the financial year, including 27 properties being auctioned “in room” on the Gold Coast.
Comparing this week's figures to the same period last year, a decrease of -20.4% in auction numbers was observed during the final week of the financial year, CoreLogic reported. Back then, vendors responded to colder weather and news of future interest rate rises, resulting in 1,881 homes being auctioned across the combined capitals.
Among the capital cities, Sydney is expected to host the highest number of auctions this week, with 735 properties scheduled. This defies the seasonal slowdown, showing an increase of 11 properties (1.5%) compared to last week's 724 auctions.
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However, it represents a decrease of -2.8% compared to the 756 auctions held during the same week last year, CoreLogic reported. Interestingly, weekday auctions account for a larger share of this week's activity, comprising 27.2% compared to 15.6% the previous week. The North Sydney & Hornsby region dominates the auction market this week, accounting for 15.4% of the properties being auctioned.
In Melbourne, auction numbers are set to drop by -28.5% this week, with 532 homes scheduled for auction, down from 744 last week, according to CoreLogic. This reflects a -18.7% decline compared to the 654 auctions held during the same period last year. Units continue to contribute significantly to the city's overall auction activity, accounting for 39.5% of the listings, a substantial increase from last week. The Melbourne-West and Melbourne-North West regions are expected to be the busiest areas, jointly representing 32.0% of the city's auction activity.
Smaller capitals
The smaller capital cities are projected to maintain relatively stable auction activity, with 321 auctions scheduled, just two fewer than the previous week.
Brisbane is set to be the most active among the smaller capitals, with 132 homes scheduled for auction, a slight decrease of two properties (-1.5%) compared to last week, according to CoreLogic. Adelaide follows with 114 homes set for auction, marking a 12.9% increase from the 101 auctions held last week.
Canberra will experience a -10.3% decrease in activity, with 70 homes going under the hammer. In Perth, only five homes are scheduled for auction, four fewer than last week, while no properties are listed for auction in Tasmania.
Looking ahead to the first week of July, capital city auction activity is expected to decline by approximately -9%, with around 1,450 homes currently scheduled for auction.
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