Auction clearance rates around the country are experiencing a modest recovery, as one senior economist predicts Sydney and Melbourne to continue to lead the way in coming months.
According to preliminary figures by CoreLogic RP Data, the national average clearance rate was around 69.9% during the previous weekend. This weekend, however, saw a marked improvement with the average reaching 71.3%.
This spring marks a potentially strong selling season, with 2,820 auctions held last week—about 1,200 of these were in Sydney and about the same were in Melbourne. More auctions mean a significant increase in the number of homes up for sale.
The cities of Sydney and Melbourne lead the national market for clearance rates, at 74.2% and 73.3%, respectively.
Dr Andrew Wilson, Domain Senior Economist, expects Sydney and Melbourne will continue to lead the way in the months ahead.
“I do think the drivers are more positive for Sydney and Melbourne than the rest,” he said.
“But there is no doubt that those clearance rates are starting to move closer to other capital city market clearance rates.”
Meanwhile, Adelaide’s auction clearance rate fell short of 70%, and Brisbane barely managed to hit close to 60%.
Other capital cities were not as fortunate. Canberra struggled to auction about half of its 58 homes while Perth and Tasmania managed to only sell less than half of the few properties they put up for auction.
Sydney’s clearance rates have consistently placed in the 80% range, and have helped pull up the national average rate to a high of 80% this year.
The report also notes that Melbourne is seeing a 0.7% increase in its weekly price, 2% for its monthly gain, and 14.3% for annual growth.
Sydney’s prices have slowed down over the past month, and its annual growth rate dropped to 17.1%.
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