Auction activity is set to pick up again after a drop last week due to the long weekend
Auction activity in the capital cities is poised to rebound this week, with higher levels following a reduction last week due to the long weekend.
This week, a total of 2,029 homes are expected to be auctioned across the combined capitals, nearly double the 1,033 homes auctioned the previous week, CoreLogic reported.
This week will witness the highest number of auctions in the past 11 weeks, which is atypical for early winter when auction volumes typically decline gradually. Comparatively, during the same period last year, 2,528 homes were auctioned across the combined capitals. However, last year's market conditions were influenced by the beginning of the Reserve Bank of Australia's rate-hiking cycle, which was starting to impact selling conditions.
Melbourne will take the lead this week with the most auctions, featuring 868 homes scheduled across the city, CoreLogic reported. Unit auctions account for 15.9% of the week's activity, slightly higher than the previous week's 15.6% but significantly lower than the 21.9% recorded before the long weekend.
Moreland and Boroondara local government areas (LGAs) are expected to be the busiest, each hosting 59 auctions. In contrast, only 315 auctions took place during the long weekend. This week's activity is 31.4% lower than the 1,266 homes auctioned last year, according to CoreLogic.
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In Sydney, there are 837 homes scheduled for auction this week, an increase of 78.8% over the 468 auctions held last week. It is also 5.3% higher than the 795 auctions conducted during the same week last year, CoreLogic reported. The majority of this week's activity, 76.6%, is scheduled for Saturday, and Canterbury-Bankstown is set to have the highest volume of auctions with 65.
Smaller capitals
Among the smaller capital cities, auction activity is expected to rise compared to the previous week, with 324 auctions scheduled, a 29.6% increase from the 250 auctions held last week.
Brisbane leads the smaller capitals with 142 homes scheduled for auction, a 36.5% rise from last week's 104, according to CoreLogic. Adelaide follows closely with 111 homes scheduled for auction, up 33.7% from the previous week's 83.
Canberra expects just two more auctions than last week, totaling 53. Perth will see 14 homes up for auction, two more than the previous week, while Tasmania has four homes scheduled for auction.
Looking ahead, capital city auction activity is anticipated to decrease by around 10% next week, with approximately 1,800 homes currently scheduled for auction. It will be important to monitor the withdrawal rate as a higher proportion of withdrawn auctions could indicate a dip in vendor confidence, especially considering most of these auctions were scheduled prior to the recent interest rate increase.
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