️ Highlights:
1. Last week was the second-biggest start to the auction season since 2008, with 1,671 auctions held across the combined capitals.
2. Auction activity was up 26.4% compared to the same time last year and more than double the number of capital city auctions held so far this year.
3. The preliminary clearance rate for last week was 73.9%, the highest since August 2023.
4. Melbourne hosted 603 auctions, while Sydney saw 562 homes go under the hammer, with both markets experiencing a significant increase in auction activity compared to last year.
5. Canberra recorded the highest preliminary clearance rate at 80.0%, followed by Adelaide and Brisbane with rates of 77.6% and 68.5% respectively.
CoreLogic Reports a Dynamic Start to the Auction Season
The auction market in 2024 has kicked off with remarkable vigor, according to CoreLogic’s latest Property Pulse. The first major auction week of the year witnessed 1,671 homes going under the hammer across the combined capital cities, marking it as the second-largest start to the auction season since CoreLogic began recording in 2008. This figure not only represents a 26.4% increase from the same period last year but also more than doubles the auction activity seen so far this year.
A Surge in Clearance Rates
The preliminary clearance rate for the combined capitals soared to 73.9%, the highest since August 20th, 2023. This significant uptick from the mid-60% range seen at the end of last year indicates a robust demand and a positive sentiment prevailing in the auction markets.
Capital City Breakdown
- Melbourne and Sydney Lead: Melbourne hosted 603 auctions, while Sydney saw 562 homes go under the hammer, both cities experiencing a substantial increase in auction activity compared to last year.
- Preliminary Clearance Rates: Both Melbourne and Sydney recorded preliminary clearance rates above the 70% mark, with Melbourne achieving its highest rate since early October of the previous year at 71.9%, and Sydney reaching a 76.3% early clearance rate, its highest since July 20th, 2023.
Smaller Capitals Show Varied Performance
- Brisbane’s Busy Auction Week: Brisbane led the smaller capitals with 203 homes auctioned, followed by Adelaide with 159 and Canberra with 132.
- High Clearance Rates in Canberra: Canberra recorded the highest preliminary clearance rate among the smaller capitals at 80.0%, with Adelaide and Brisbane also showing strong early success rates.
Market Sentiment and Future Outlook
The strong start to the year suggests that low inflation news and the potential for early rate cuts may already be bolstering market sentiment. The coming weeks will be crucial in determining whether this initial surge is a sign of sustained momentum or merely early-year enthusiasm.
Conclusion
The auction market’s vibrant start to 2024 highlights a confident stride into the new year, with both the volume of auctions and clearance rates showing significant growth. This performance sets a promising tone for the real estate sector and will be closely watched for indications of market trends in the months ahead.