Preliminary clearances up despite RBA rate rise
The combined capital cities this week posted their highest preliminary auction clearance rate in more than a year, according to new data from CoreLogic.
Auction activity was relatively stable this week, with 1,750 auctions held across the combined capitals, up from 1,739 the prior week. This time last year, the combined capitals held 2,059 auctions.
Despite the unexpected cash rate hike by the Reserve Bank last week, the combined capitals posted a preliminary clearance rate of 75.15, the highest rate since mid-February 2022’s 75.7%, CoreLogic reported. Last week’s preliminary clearance rate was 69.2% (revised to 66.2% at final figures). This time last year, 61.8% of auctions were successful.
Melbourne hosted 732 auctions, down from 737 the prior week. With 587 auction results collected as of Monday, the city’s preliminary clearance rate stayed above 70% for the fourth straight week at 76%. That’s down from last week’s preliminary clearance rate of 77.7% (revised to 71.8% at final figures). This time last year, Melbourne reported a clearance rate of 59.8% on 905 auctions.
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Sydney held 650 auctions, 14% higher than the 570 held the previous week. Of the 650 results collected as of Monday, 78.5% were successful, making this week Sydney’s highest preliminary clearance rat4e since mid-February 2022’s 79.6%. The previous week’s preliminary clearance rate was 70.7%, revised to 68% at final figures, CoreLogic reported. This time last year, 55.3% of Sydney auctions were successful.
Smaller capitals
Brisbane had the busiest auction market among the smaller capital cities, with 129 properties going under the hammer. It was followed by Adelaide (128) and Canberra (97).
Adelaide posted the strongest preliminary clearance rate among the smaller capitals at 72.15, followed by Brisbane (68.2%) and Canberra (66.2%).
In Perth, two of the six results collected as of Monday were successful. The one auction held in Tasmania was unsuccessful, CoreLogic reported.
Clearance rates are creeping back up amid predictions from big banks that the house price slump is largely over. Both ANZ and Westpac recently predicted that prices would begin to rise again in 2024.
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