️ Highlights:
1. The number of homes taken to auction in the combined capitals decreased from the previous week but increased compared to the same time last year.
2. The preliminary clearance rate for capital city auction markets rose to 76.2%, the highest since June last year.
3. Melbourne had the highest number of auctions, with a preliminary clearance rate of 73.1%, while Sydney had the highest preliminary clearance rate of 80.4%.
4. Brisbane had the busiest auction week among the smaller capitals, with a preliminary clearance rate of 71.1%.
5. The newfound strength in auction markets may be attributed to expectations of an earlier-than-expected interest rate cut, leading to a boost in sentiment.
CoreLogic’s Latest Property Pulse Highlights a Robust Auction Market
In the latest week, the auction market across Australia’s combined capital cities has demonstrated a solid recovery from the subdued performance seen in late 2023. CoreLogic’s Property Pulse for 12 February 2024 reports that 1,551 homes were taken to auction, a slight decrease from the 1,712 homes auctioned in the previous week but an increase from the same period last year, which saw 1,482 homes auctioned.
The preliminary clearance rate has climbed to 76.2%, marking the highest rate since the first week of June of the previous year. This represents a notable improvement from the previous week’s preliminary clearance rate of 73.9%, which was later revised down to 68.3% upon finalization.
Capital City Breakdown
- Melbourne led the auction activity with 618 homes taken to market, achieving a preliminary clearance rate of 73.1%, the highest since mid-July of the previous year.
- Sydney followed closely with 615 auctions, boasting an early clearance rate of 80.4%, the highest preliminary result since the week ending 24 October 2021.
Smaller Capitals’ Performance
- Brisbane recorded the busiest auction week among the smaller capitals with 147 homes auctioned.
- Adelaide saw 103 homes taken to auction, achieving the highest preliminary clearance rate among the smaller capitals at 86.2%.
- Canberra and Perth also showed active auction markets, with early success rates of 71.1% and positive results in three out of four auctions, respectively.
Market Sentiment and Outlook
The resurgence in auction clearance rates is indicative of a positive shift in market sentiment, potentially fueled by expectations of an earlier-than-anticipated interest rate cut. The alignment of buyer and seller pricing expectations appears to have improved significantly, contributing to the robust start of the year for the auction market.
Conclusion
The auction market’s performance in early 2024 reflects a significant turnaround from the weaker results observed at the end of last year. With clearance rates reaching new highs and a healthy volume of auctions, the market is poised for continued strength in the coming months. This positive momentum is a clear indicator of the improving fit between buyer and seller expectations, setting an optimistic tone for the property market this year.