More properties are coming to market as the traditional auction season rolls on, but capital city clearance rates have hit their lowest level since June 2012 and are almost certain to keep sliding.
Just 42.7 per cent of the 1,541 auctions in Australia’s capital cities cleared during the week straddling October and November, but CoreLogic says the latest preliminary results are worse again.
Just 46.8 per cent of 2,384 auctions nationwide cleared last week according to preliminary readings, down from 62.8 per cent at the same time last year
The Melbourne and Sydney property downturn is again a major factor – even though the cities had the nation’s best clearance rates last week.
‘It’s likely that as final results are collected, this week’s final clearance rate could come in lower again (than 46.8 per cent), potentially nudging the low 40 per cent range,’ CoreLogic said in its weekly release.
‘This is a considerably softer trend to what was seen over the same period last year when clearance rates were tracking around the low-mid 60 per cent range.’
The national weighted average clearance rate has been below 50 per cent for seven consecutive weeks with Sydney and Melbourne attracting most of the headlines as the cities’ soaring values fall amid a tighter lending environment and stagnant wage growth.
A fortnight ago, Sydney’s final auction clearance rate fell to 42.6 per cent, its lowest since December 2008.
Last week, however, Sydney’s 48.4 per cent preliminary clearance rate, and Melbourne’s 48.3 per cent, were the highest of the capital cities.
Just 32.1 per cent of 139 Brisbane auctions cleared, while 47.5 per cent of 122 Adelaide properties sold.
Canberra saw 45 per cent of 110 properties sold at auction, while only 20 per cent of 39 Perth auctions cleared.
Major regional auction centres all had a clearance rate below 50 per cent, with the Sunshine Coast and Gold Coast clearing just 31.8 per cent and 34.5 per cent.