Auction sales continue to fall

This week marked 12 months since the auction market across the capital cities combined recorded a clearance rate of above 70%.

According to data from CoreLogic, in the week ending 27 May, there were 2,287 homes taken to market across the capital cities, returning a preliminary clearance rate of 59.7%.

Analysis suggests progressively weakening selling conditions over the past year have seen property values fall, resulting in fewer homes selling at auction.

The week before saw the final clearance rate fall to the lowest recorded since late 2013, with 56.8% of properties selling.

This week Melbourne recorded a preliminary clearance rate of 60.9% across 1,132 auctions. This is a huge fall from the figure last year when 74.2% of properties sold at auction, with an even higher volume of 1,366 properties.

As these are simply preliminary rates, it is likely the city’s final clearance rate will fall further and below 60%.

Volumes increased across Sydney this week, with 808 auctions held across the city returning a 62.7% preliminary clearance rate.

Adelaide recorded the highest clearance rate of 66.7%, while only 31.6% of homes sold in Perth.

Looking at results across the individual property types, the unit market is outperforming the house market with 64.9% of units selling, compared to 57.6% of houses.

The CoreLogic analysis said that while the proportion of units going to market is generally considerably lower, looking at the trend over time, the weakening selling rate is more evident across the larger segment of the market with 18.2% more houses selling one year ago, compared to an 11.7% difference across the unit segment.

From Australian Broker

Disclaimer: Please read

View

These articles provide you with factual information only, and are not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. The information in these articles is believed to be reliable at the time of distribution, but EFS does not warrant its completeness or accuracy. Neither EFS nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in these articles. For information about whether a loan may be suitable for you, call EFS on 02 8041 6746.