Around half of all homes up for auction across Australia’s capital cities sold during the first quarter of 2019, which shows an increase of 6.6 percentage points when compared to the December quarter.
And while the CoreLogic Quarterly Auction Market Review’s clearance rate of 49.9 per cent is step in the right direction, the property market still pales in comparison to the 64.6 per cent seen during the same quarter in 2018.
Across the combined capitals, 14,647 residential auctions were scheduled in the March 2019 quarter compared to 25,894 in the December 2018 quarter and 20,701 over the March quarter a year ago.
CoreLogic’s head of research Cameron Kusher said auction volumes and clearance rates are mirroring the broader slowdown in property transaction and housing market conditions.
“Auction clearance rates over the March 2019 quarter were 14.7 percentage points lower than they were over the March 2018 quarter,” he said.
“Vendors are less confident of achieving a positive result at auction, and this has further impacted auction volumes during what is traditionally a quiet start to the year.”
Sydney posted the largest improvement in auction clearance rates relative to the December quarter last year, with 53.2 per cent of the 5,278 properties selling under the hammer.
While this showed a promising 10.1 percentage point increase relative to the December quarter, it was still 10.4 percentage points lower than the same period for 2018.
Melbourne was a close second, with a 51.8 per cent clearance rate for the 6,375 auctions scheduled. However, this was down from 12,372 in the December quarter and 9,488 the year prior.
Adelaide (48.8 per cent), Perth (31.4 per cent) and Brisbane (31.3 per cent) also showed increases, however Canberra (45.3 per cent) and Hobart (44.8 per cent) both suffered drops.
Canberra reported the most significant drop year on year, with clearance rates falling by 22.6 percentage points in the March 2019 quarter.