Aussie auction market drops to three-month low

In what could be a sign of typical winter conditions cementing themselves within the market, CoreLogic is reporting the nation will freeze through its coolest auction week in a while.

According to the research firm, the week ending 25 June will see a 4.9 per cent reduction in auction activity Australia-wide, with 1,850 scheduled to go under the hammer this coming week. CoreLogic believes this decline could be the continued commencement of typical winter conditions, with vendors opting to hold their properties until the market, and nation, begins heating up in spring.

Sydney is set to be the nation’s busiest auction market, with 782 pencilled to go under the hammer this coming week. Unlike the wider national market, the New South Wales capital is reporting a 2.4 per cent volume increase, bucking the seasonal trend. Despite Saturday remaining the city’s most popular day for auctions, the harbour city is hosting a higher portion of weekday auctions (15.6 per cent) than the national average.

Last week, Australia’s largest city reported a final clearance rate of 70.8 per cent, with the Northern Beaches, where 88.6 per cent of the 52 auctions ended positively, the city’s most successful sub-region. Conversely, Sydney’s south-west, which reported a final clearance rate of 45.2 per cent from 48 auctions, was its poorest performing sub-region.

Melbourne’s auction activity is expected to decline 13.4 per cent from last week. So far, the Victorian capital has 748 auctions scheduled this week. Unit auctions represent 35.7 per cent of the city’s volume.

Last week, the Victorian capital registered a final clearance rate of 69.5 per cent. Melbourne’s outer east, where nearly 92 per cent of the 50 auctions ended successfully, was the city’s strongest performing sub-region. On the opposite end of the success spectrum, the city’s west, where 55.2 per cent of the 82 auctions reported a positive result, was the city’s lowest performing sub-region.

Activity within the nation’s smaller capitals remained steady on last week’s, with 320 auctions scheduled this coming week. Brisbane is leading the charge, with the Queensland capital set to host 125 auctions, followed by Adelaide’s 105, and Canberra’s 80.

In Perth, nine homes are scheduled for auction, five below last week’s activity levels, while one home is scheduled for auction in Tasmania.

The nation’s current trajectory of winter-induced auction activity declines is expected to continue next week, with CoreLogic reporting 1,600 homes are scheduled to go under the hammer – down 13 per cent this week.

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