Auction markets have remained resilient, with both volumes and the preliminary clearance rate rising week-on-week. The strong auction results add some complexity to speculation that the housing market is moving through its peak rate of growth. At face value, auction markets are continuing to indicate continued strength in selling conditions across Sydney and Melbourne, however it’s harder to know whether vendors are adjusting their reserve pricing in order to clear their property. There were 2,376 auctions held across the cities this week, with a preliminary auction clearance rate of 76.2 per cent. Last week, a final clearance rate of 73.0 per cent was recorded across 1,689 auctions. Over the corresponding week last year, auction volumes were lower than this week, with 1,876 properties taken to auction and a clearance rate of 69.5 per cent. Melbourne had the highest number of auctions this week, with 1,092 properties going to market, with a lower preliminary rate of clearance week-on-week (76.8 per cent), however Sydney saw the largest increase in volumes over the week, with 938 auctions held across the city, increasing from last week’s 592. Final auction clearance rates are published on Thursday and it will be important to monitor whether preliminary clearance rates undergo some revision as more data flows through.
