Money Sydney auction clearance rates rebound as fewer homes are taken to market

03:20  07 may  2018
03:20  07 may  2018 Source:   businessinsider.com.au

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Australian capital city auction clearance rates rebounded modestly last week, rising back above the 70% level. The group said the increase coincided with a sharp reduction in properties that were taken to market .

Auction clearance rates in Sydney rebounded last week after falling to a near two-year low in late October. “There were 1,217 homes taken to auction this week, virtually unchanged from last week’s 1,215,” CoreLogic said.

A house on the market going up for auction.© AAP A house on the market going up for auction.

Preliminary auction clearance rates in Australia picked up last week as the total number of auctions declined.

Weekly auction data from CoreLogic showed 2,280 auctions were held over the weekend -- down 11.5% from the previous week when 2,577 auctions were held.

The lower volume helped drive an improvement in clearance rates, with 63.5% of auctions successful across Australia's combined capital cities. That was up from the prior week when clearance rates dipped to their lowest level of 2018.

Notably, clearance rates in Sydney picked up from last week's fall below 60%.

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The first reading of auction clearance rates around the country is out, and while the national results look solid, the initial Sydney result looks weak. One year ago, 509 Sydney homes were taken to auction and the clearance rate was 78.0 per cent.

Sydney ’s preliminary auction clearance rate also rose to 69.5%, up from the prior week’s preliminary reading of 67.2%. It was also well above the final reading for last week of 61.3% which was the lowest in close to two years. Despite the rebound in both markets

"774 auctions were held this week with 66.9% selling, increasing on last week when only 55.8% of auctions were successful across a slightly higher 829 auctions," CoreLogic said.

The result saw Sydney's auction market outperform Melbourne which had a clearance rate of 63.5% across 1,137 auctions.

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One year ago, 509 Sydney homes were taken to auction and the clearance rate was 78.0 per cent. This week, the performance across Sydney ’s individual sub regions was mixed.

Auction clearance rates in the big housing markets of Sydney and Melbourne ticked higher this week as activity picked up after the Anzac and Easter holidays. Domain chief economist Dr Andrew Wilson said the uptick could be due to a rebound after the distraction of nearly a month's worth of holidays.

a screenshot of a cell phone© Provided by Business Insider Inc

The clearance rate in Melbourne was lower than last week's reading of 65.5%, even though the number of auctions held fell by almost 200.

CoreLogic said that more broadly, clearance rates have picked up from their December lows but current remain in a downward trend.

"Although the preliminary clearance rate has shown a positive rise over the week, the trend in auction clearance rates -- based on the more complete final results -- clearly shows a downwards trend in clearance rates," Corelogic said.

As has often been the case this year, auction clearance rates for units last week were higher than houses.

Unit auctions returned a clearance rate of 67.7% across both metro and regional areas, while the clearance rate for houses was only 61.7%.

"A similar trend is evident in CoreLogic indices which show the unit market outperforming house values as housing demand slides towards the more affordable segments of the market," CoreLogic said.

a screenshot of a cell phone© Provided by Business Insider Inc

Weekly house price data will be released by CoreLogic later this morning.

It follows monthly figures for April last week which showed Australian home prices fell for the seventh straight month in combined weighted average terms.

Pablo Picasso painting worth $70 million damaged before auction .
Christie's auction house was forced to remove Picasso's 1943 "Le Marin (The Sailor)" from this week's event after the accident.Christie's auction house was forced to remove Picasso's 1943 work of art "Le Marin (The Sailor)" from this week's event after the painting sustained unspecified damage during its final preparations Friday.

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