More homes were taken to auction in the past week, but the rate of properties sold remains near a five-year low amid weak selling conditions.
There were 2,287 homes up for auction in the week to May 27, a slight increase on the 2,100 homes in the prior week, returning an auction clearance rate of 59.7 per cent, the latest CoreLogic property figures show.
That’s an increase on the prior week when the clearance rate fell to the lowest rate recorded since late 2013, with 56.8 per cent of properties selling at auction.
The property group said this week’s results mark 12 months since the auction market last recorded a clearance rate above 70 per cent, with selling conditions progressively weakening over the year as housing prices fall, resulting in fewer homes selling at auction.
Home prices in the past week fell 0.1 per cent across the combined five capital cities, and were down 1.1 per cent over the past 12 months.
Melbourne’s preliminary clearance rate of 60.9 per cent was down on the prior week’s result and significantly lower compared to the 74.2 per cent recorded at the same time last year when volumes were also higher.
“It is likely Melbourne’s final clearance rate this week will weaken further and fall below 60 per cent as results are collected,” CoreLogic said on Monday.
Volumes increased across Sydney in the week, but the harbour city’s clearance rate was also sharply lower from 72.7 per cent a year ago to 62.7 per cent.
Adelaide was the only capital city to record a higher clearance rate in the past week compared to the same time last year.