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The preliminary clearance rate for the week ending 25 August climbed a little higher off the back of rising temperatures in some of Australia’s coldest cities.
Across the major cities, the preliminary clearance rate reached 71.4 per cent – the highest early clearance rate since the last week of July, according to CoreLogic.
While not a huge jump, the result was 70 basis points higher than the previous week, which came in initially at 70.7 per cent and later revised down to 64.8 per cent.
The clearance rate has recently been consistently rising alongside the number of auctions hitting the block across Australia’s capitals – which is in line with normal seasonal trends ahead of spring selling season.
All together, 2,052 homes went under the hammer across the capitals last week. It was an increase on the week before but not quite as high as this time last year, when 2,278 homes hit the block. Even so, CoreLogic research analyst Caitlin Fono said that with each week recording steady gains, it was “clear that auction activity is warming up as we approach spring”.
The nation’s two major auction markets contributed to the stronger result, with Melbourne hosting 889 auctions to return a preliminary clearance rate of 68.7 per cent – up from 67.4 per cent a week ago, which revised down to 61 per cent on final numbers. Sydney hosted 807 auctions with a preliminary clearance rate of 74.9 per cent, which just nudged above the previous week’s result of 74.6 per cent and ultimately ended up at 67.6 per cent.
The smaller auction markets have slipped into a consistent pattern, with Adelaide leading the clearance rate at 79.5 per cent, followed by Brisbane at 67.3 per cent and Canberra at 56.5 per cent.
CoreLogic expects that the depth of market demand will be tested over the coming weeks, as a steady flow of fresh listings come onto the market, translating to consistently higher auction numbers.
This week, approximately 2,300 auctions are expected to be held, with the volume likely to rise more substantially into spring and early summer.
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