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