Auction’s Indicate Market Stability

Auction clearance rates continue to rise as vendors regain confidence and buyers continue to be active in major markets across Australia.

Data from CoreLogic shows that 71% of the 613auctions held during the week ending 24 May achieved a sale. This compares to 413 auctions at the same period in April, when only 41% recorded a sale.

“We’ve seen clearance rates come back to where they were prior to the restrictions,” says CoreLogic commentator Kevin Brogan.

“There’s no doubt there are fewer participants in the market who are ready to purchase a property, but the fact is the supply has also diminished”

“We’re much closer to being in balance than the first couple of weeks of April when thousands of properties were listed and agents were struggling to come to grips with online auctions in volume and there were masses of properties withdrawn,”

Brogan says the past few weeks have shown a reduced number of homes sold prior to the auction, indicating vendors were becoming more confident to bring their properties to auction in expectation of securing a higher price.