Several capitals gearing up for their busiest auction week of the year
Capital city auction activity is expected to soar this week, with a 'super Saturday' event leading to a significant increase in auction volumes, according to a report by CoreLogic.
Sydney, Melbourne, Brisbane, and Canberra are all gearing up for their busiest auction weeks of the year to date, with a total of 2,883 homes set to go under the hammer on Saturday alone, and an additional 639 auctions scheduled throughout the rest of the week. These numbers are projected to exceed 3,000 for the first time since late May 2022 and represent the highest levels since mid-April 2022.
Although still below the record auction volumes seen in late 2021, this week's figures show a significant rise compared to the previous week, with a 43.0% increase in auction numbers, CoreLogic reported. Furthermore, the numbers are 83.3% higher than the same period last year.
This surge in auction activity is not unusual during the spring selling season when auction numbers typically rise, peaking in late November to early December. However, this year saw an early start to the spring season, with weekly auction numbers showing a steady increase since early July, CoreLogic reported.
Despite the rise in auction volumes, the combined capital clearance rate has remained relatively stable, hovering around the 65% mark since early July. This suggests that the increase in supply has been met with a corresponding rise in demand. While the clearance rate is slightly lower than the average recorded in May, last week's rate of 65.7% was still 1.7 percentage points above the five-year average. In comparison, the same period last year saw weaker selling conditions, with only 58.8% of auctions resulting in a successful sale.
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Although this week is likely to be the peak of the spring selling season, early indications suggest that auction activity will remain elevated in the coming weeks. Melbourne, traditionally the largest auction market, is anticipating 1,746 homes to go under the hammer this week, marking a significant increase from the previous week and almost triple the number compared to the same period last year, CoreLogic reported.
Sydney is also expected to experience a surge in auction activity, with over 1,000 homes set to be auctioned for only the third time this year.
Auction activity in Brisbane and Canberra is set to reach its highest levels of the year to date, according to CoreLogic. Brisbane is expected to have the busiest week among the smaller capitals, with 241 homes scheduled for auction, while Canberra is projected to see a doubling of auction volumes compared to the previous week.
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