Auction clearance rates – rate cut revival

Editorial director of Switzer
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The weekend after a surprise rate cut, auction clearance rates hovered around 70% for both Sydney and Melbourne and were higher in Adelaide as well.

The number of properties sold at auction was solid, as was the total value. The median price was down slightly on the previous week, but the preliminary results we show here from the weekend are always updated during the week, with the previous week’s results giving a much more reliable indicator of that week’s clearance activity than the Saturday just gone.

For example, the results for Saturday (below), show that of the number listed for Sydney i.e. 356, there were only 265 reported auctions.

The results for Sydney for the previous week (below) show of the 394 properties listed, there were 333 reported auctions, which sold for a median value of $925,000. Melbourne always has a higher number of listed properties for auction than are actually reported, but the number of reported auctions is always revised up the following week. In Melbourne’s case this often results in a clearance rate which is higher. For example, its clearance rate for Saturday 4 May is now 75.6%, compared to the 70.6% that was initially reported.

But what is important is that the latest results are stronger than they were a year ago, and have been for some months, indicating a sustained improvement in the property market as is evidenced by the table below.

Sydney had the most expensive property sold at auction – a six-bedroom house sold in Roseville, 12 kilometres north west of the CBD, for $3.7 million – and also the most affordable with a two-bedroom unit being sold in Cabramatta, 30 kilometres south west of the CBD, for $190,000.

The most expensive property sold at auction in Melbourne was a four-bedroom house in Brighton, 11 kilometres south east of the CBD, which went for $1.82 million. The most affordable was a two-bedroom unit, which sold in Footscray, five kilometres west of the CBD, for $270,000.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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