Auction clearance rates up, up, up in a seller’s market

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The lazy summer season is gradually drawing to a close as financial markets continue their climb up the trajectory – and auction rates are no exception. Last week we saw volumes skyrocket to a huge 1,650 across Australian capital cities, up from 972 auctions the week prior. In the corresponding week last year, there were 1,129 auctions.

Source: RP Data

The weekly auction clearance rate followed suit, jumping to a very positive 71.8% – the highest rate we’ve seen since the end of October 2013. This is up from 68.2% the previous week and 58.8% at the same time last year.

Source: RP Data

The largest auction market of the week was Melbourne, where properties clocked in a clearance rate of 70.9% across 785 auctions. However, Sydney had the highest clearance rate of the week at 80.4% across 596 auctions. Brisbane was the only capital city which failed to clear the 50% mark last week, although it still came close with a clearance rate of 47.3% across 133 auctions.

Home value changes also remained afloat, increasing 0.1% across the combined capital cities of Sydney, Melbourne, Brisbane, Adelaide and Perth. However this rate was largely carried by Sydney (0.6% weekly increase) and Brisbane (0.2% increase). Meanwhile, the other capital cities lagged behind, with Perth recording the biggest home value decrease at -0.5%. Nevertheless, combined capital cities’ home values are up 10.1% from this week last year – and 1.3% up from the beginning of the calendar year.

Source: RP Data

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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