Auction Clearance Rates - Sold to Listed - July 16th 2022
Clearance rates continue to remain poor, pointing to rapidly falling prices
Please note the following is based off preliminary numbers and is subject to significant changes once unreported auctions are chased up.
It should be taken as an extremely rough and preliminary indicator, before other data sources fill in the blank later next week.
For those wanting more accurate data with the missing pieces filled in, that is posted here by the great team at SQM Research on Tuesdays.
Auction Action Summary
Another weekend of poor results for the Sydney and Melbourne markets consistent with ongoing price falls. This has been confirmed by the Corelogic housing price index, with AFR columnist Christopher Joye recently noting that the Sydney market is falling at an annualized rate of more than 20%.
Meanwhile, auction volumes in Sydney were in the same ballpark as last year, which is notable considering that this weekend last year marked the fourth weekend in lockdown and a significant reduction in auction volumes.
In Melbourne auction volumes are down 43.6% compared with this weekend last year. While Sydney prices are currently falling faster than Melbourne’s according to Corelogic, if this weakness in the Melbourne market persists that may change further down the road.
TLDR: Auction markets remain weak despite falling auction volumes
On a 4 week moving average basis, Sydney continues to skip a long the bottom as falling auction volumes continue to hold up the clearance rate, at least for now. In Melbourne, the 4 week moving average hit a new post-rate rise low.
Meanwhile, on the ground in Sydney, Twitter user ParraPower is also noting a further weakening in the auction market. ParraPower posts a weekly roundup on the auctions he attends or monitors. His commentary can provide some interesting insight into the current mood of the market.
Q&A
Why are these numbers different to those provided by Corelogic or Domain?
This data is based upon the percentage of scheduled auctions that resulted in a sale of the property as of the time of the initial reporting by agents on Saturday evening.
The data from Corelogic and Domain is based upon the number of successful auctions divided by the number of auctions reported by agents and other property industry figures.
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