Auction activity heated up across Australia last week, with auction numbers up 11% to 1,467 across the capital cities compared to the previous week.
Early auction results showed that the combined clearance rate fell 2.2 percentage points to 65.2% last week, according to CoreLogic Economist Kaytlin Ezzy.
Weaker auction results were recorded across most of the capitals, with only Brisbane recording a week-on-week increase in its preliminary clearance rate.
Last week’s national result was still significantly higher than the average rate recorded in December at 58.5%.
For comparison, 2,401 homes were taken to auction across the capital cities this time last year and recorded a final clearance rate of 73.5%.
Ezzy said an increase in the withdrawal rate, from 9.3% to 13.4% last week, could signal a worsening in vendor confidence following the more pessimistic inflation outlook and expectation for further rate hikes from the RBA.
A rise in the portion of properties passed in at auction was also likely once final figures were reported.
As we navigate an uncertain interest rate environment, clearance rates and auction activity will continue to be an important marker for both buyer and vendor confidence, Ezzy said.
With just shy of 2,000 capital city auctions expected, next week will provide a timely test of market demand.
In Sydney, 606 homes were auctioned across the city last week, with preliminary clearance rates falling 3.2 percentage points to 67.4%.
Last week, Melbourne had 543 homes go under the hammer and recorded a 63.8% preliminary clearance rate, down 3.3 percentage points week-on-week.
Brisbane and Canberra both hosted 102 auctions. Brisbane’s preliminary clearance rate rose 11.5 percentage points to 63.4%, while Canberra recorded a 60% success rate.
Adelaide saw 99 homes taken to auction last week and recorded a preliminary clearance rate of 71.2%.
In Perth, four of the 11 results collected so far returned a successful result, while the two auctions held in Tasmania this week were unsuccessful.