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In spite of a myriad of economic headwinds and the long weekend threatening a slowdown, the Australian auction market’s strong momentum remained, according to CoreLogic.
Following an activity decline of 42.7 per cent leading to 1,040 capital city auctions taking place across the country in the week ending 11 June, so far, 825 results have been collected, with 72.4 per cent of them returning a positive result. Even after recording a preliminary clearance rate of over 70 per cent, CoreLogic is reporting last week’s performance was the market’s weakest in six weeks, suggesting the Reserve Bank of Australia’s (RBA) June cash rate hike has already had an impact on buyer and vendor confidence.
Sydney was the busiest auction market this week as 468 homes went under the hammer across the harbour city, a 37.7 per cent decline on the previous week. The NSW capital reported a preliminary clearance rate of 75.9 per cent, down 3.7 per cent on the previous week, with this decline attributed to weakened vendor confidence and a lift in the withdrawal rate, which jumped from 9.9 per cent to 16.1 per cent.
The city’s inner west achieved a nearly perfect auction market performance with 96 per cent of its 33 auctions returning a positive result, marking it as Sydney’s strongest performing sub-region. On the flip side, the city’s south-west, which reported a preliminary clearance rate of 62.5 per cent from 23 auctions, was the NSW capital’s weakest performing sub-region.
In Melbourne, auction activity dwindled by more than half as 315 homes went under the hammer across the city last week. A preliminary clearance rate of 73.7 per cent has so far been recorded from 266 results, marking the lowest rate in the Victorian capital in seven weeks.
The city’s outer east, which reported a preliminary clearance rate of 88.2 per cent from 22 auctions, was its strongest performing sub-region, while Melbourne’s west, where a 53.9 per cent of the 43 auctions ended successful, was its poorest performing sub-region.
Having not celebrated the King’s birthday public holiday, Brisbane was the busiest of the smaller capital city markets, with 108 homes going under the hammer across the Queensland capital, 58.8 per cent of which were successful — this marks a preliminary clearance rate decline of over 18 per cent on the previous week.
In Adelaide, 85 homes went under the hammer, with the South Australian capital reporting its highest preliminary clearance rate since the end of April (85.7 per cent), while Canberra, where 52 auctions went ahead, reported a preliminary clearance rate of 52.3 per cent.
Across Perth, two of the six results collected so far have been successful, while no auctions were held in Tasmania this week.
CoreLogic is reporting the national auction market is set to rebound next weekend following its public holiday-induced lull with over 2,000 homes scheduled to go under the hammer, before stabilising towards the average volumes recorded across May.
Even with the RBA’s shock June cash rate hike, vendor and consumer confidence has remained sturdy, however, the research firm warns the future will not be littered simply by clear skies, with the potential for market conditions to deteriorate under the weight of potential further cash rate increases.
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