Money Australian auction clearance rates continue to cool

07:21  19 june  2017
07:21  19 june  2017 Source:   Business Insider Australia

Australia's housing market is showing further signs of cooling

  Australia's housing market is showing further signs of cooling Australian auction clearance rates and house prices weakened last week, adding to evidence that conditions across the broader housing market are cooling. According to data released by CoreLogic on Monday, a preliminary capital city auction clearance rate of 71.8% was achieved last week, continuing to subside from the levels regularly reported earlier in the year.While above the 69.8% final clearance rate reported in the prior week, the preliminary figure has a tendency to be revised lower as tardy, often unsuccessful auctions, are reported the group. Indeed, CoreLogic reported a preliminary clearance rate of 73.

Australia ’s housing market continues to cool with auction clearance rates coming in below 70% again last week. NOW WATCH: Money & Markets videos. Want to read a more in-depth view on the trends influencing Australian business and the global economy?

That’s the succinct view offered by CoreLogic RP Data’s latest property market indicator summary which revealed Australian capital city auction clearance rates continued to hover around 70% last week.

  Australian auction clearance rates continue to cool © Olga Kashubin/Getty Images

Australia's housing market continues to cool with auction clearance rates coming in below 70% again last week.

According to preliminary data from CoreLogic, a national clearance rate of 69.6% was achieved across the nation's capitals, continuing the trend seen in the prior two weeks.

Of the 2,407 auctions held, the group received results from 1,933. Of those, 1,361 properties sold while 572 remained uncleared.

While slightly higher that the 67.8% final clearance rate recorded in the previous week, the lowest so far in 2017, given the preliminary data is often revised lower as often unsuccessful results are reported to the group later, it's likely the week's final reading -- released this Thursday -- will be even lower.

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Australian auction clearance rates continue to soften, hinting that the deceleration in price growth seen in recent months may continue in the period ahead. And, like Melbourne, Sydney’s property market is also continuing to cool compared to levels seen earlier this year.

Australian auction clearance rates continue to soften, hinting that the deceleration in price growth seen in Cool ? It will start to freeze soon. When property prices fall the equity borrowing opportunity in the house becomes less and then the credit crunch hits and that rolls on to the retail sector .

The preliminary figure for the prior week was originally reported at 71.8%.

Clearly, curbs on investor lending and higher mortgage rates, along with affordability constraints, are now acting in tandem to cool what were hot housing market conditions in Australia's southeastern capitals.

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Sydney has had another week of cooling house prices as auction clearance rates continue to slide across the markets. The last time Sydney had auction clearance rates in the 60 per cent and even the 50 per cent brackets was in the last quarter of 2015 and into 2016 shortly after the Australian

Australian auction clearance rates continued to improve last week despite higher levels of stock hitting the market, adding to tentative evidence that they may have bottomed in late 2017. According to preliminary data released by CoreLogic

This table from CoreLogic shows how individual markets fared last week.

  Australian auction clearance rates continue to cool © Provided by Business Insider Inc

Sydney, at 72.4%, recorded the highest clearance rate of all the capitals, closely followed by Melbourne and Adelaide at 72.2% and 71.8% respectively.

While the preliminary figure for Sydney was higher than the final reading in the prior week, CoreLogic suggests it too will be revised below the 70% level when the final data is released.

"Across Sydney, preliminary results show an improvement in the rate of clearance after last week’s final result saw the clearance rate drop below 70%, however as more results are collected it’s likely Sydney’s final clearance rate will again slip below the 70% mark," it says.

In the prior week, Sydney recorded a final clearance rate of 67.7%, the lowest level since April 2016.

CoreLogic said Melbourne’s auction results "have also moderated" in recent weeks.

Indeed, at 72.2%, the preliminary figure was below the 75.9% final result reported in the prior week.

The moderation in clearance rates suggests that prices will likely follow suit. However, at current levels, it only points to a slowdown in price growth based off historic norms, rather than an outright decline in home values.

CoreLogic will release updated price data for Australia's five mainland state capitals later in today's session.

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