Auction numbers go up, as clearance rates ease off

Australia’s housing market recorded it’s second busiest week of the year last week, as the market continues to favour sellers but clearance rates continue to ease off.

Muhummad, Tenille and son Jacob Akkouche outside their southwest Sydney family home, which sold at a weekend auction for $100,000 above reserve. Picture: Jane Dempster

Australia’s housing market recorded it’s second busiest week of the year last week, as the market continues to favour sellers but clearance rates begin to ease off.

Upwards of 3560 homes were taken to auction at the weekend, up 8.2 per cent from the previous week when 3292 homes went under the hammer, according to data from CoreLogic.

The preliminary clearance rate of the combined capitals came in at 75.5 per cent, up from 70.6 per cent this time last year.

“It’s still a real seller’s market as the clearance rate continues to hover around that mid-70 per cent mark,” CoreLogic research director Tim Lawless said .

“We’ve seen strong demand throughout the first half of this year and that was no different this week.”

Tenille Akkouche and her husband, Mohammad, sold their five-bedroom property in southwest Sydney at auction on Saturday for $100,000 over reserve.

With more than 16 registered bidders forcing the auction to spill out on to the street, Ms Akkouche said she was “thrilled” to see her Carnes Hill house go for more than $2m. “We took advantage of the market being so good and decided to list it and move up to the Gold Coast,” she said.

“It’s not a price you usually see in the area. We had so much interest in the property so it was brilliant to see it go for so much over asking.”

The property was sold by Ray White Carnes Hill agent Shafeel Haq.

Ray White chief auctioneer Nerida Conisbee said she could see a trend developing of Sydneysiders making the most of the seller’s market to escape the city to move rural or interstate. “What we are continuing to see is property selling well above reserve and well above the highest offer,” she said.

“A lot of people who are retirees living in big family homes and seeing the best market conditions … in quite some time, are making the most of that.”

While clearance rates remain high, Ms Conisbee indicated a downward trend occurring as the warmer months approach and more houses are listed for auction.

Sydney had its busiest week since late March, with 1290 homes taken to auction this week.

The increase in volumes saw Sydney’s preliminary clearance rate continue to fall for the fifth consecutive week, with 75.1 per cent of the results recorded returning as successful. Last week had a reported preliminary clearance rate of 75.9 per cent.

Sydney also reported its highest withdrawal rate since mid-­August, with 13 per cent of properties withdrawn.

“The clearance rates are starting to drop a little with more property coming on to the market because the end of lockdown has made people more confident, and also means people are moving out of Sydney,” Ms Conisbee said.

“It’s still a sellers’ market but beginning to reach more into the buyers’ favour now.”

Across Melbourne, 1556 homes went under the hammer this week, up 11.3 per cent from the week prior. Melbourne recorded a rise in its preliminary clearance rate, with 74.1 per cent of the results collected so far returning a successful result, up from 72 per cent the week before.

Both Canberra (79.9 per cent) and Adelaide (77.8 per cent) recorded their highest auction volumes since 2008, seeing their preliminary clearance rates drop below 80 per cent for the first time in nine and 10 weeks respectively.

Brisbane’s clearance rate was 80 per cent, while 83.3 per cent of Perth’s auctions were recorded as successful.