Despite auction volumes falling this weekend, clearance rates remain steady across Sydney and the other capitals.
In Sydney, a combination of the Labour Day long weekend and the NRL grand final has the scheduled volume of auctions down -35.2% this week, with 523 auctions scheduled across the city. The previous week saw 807 homes auctioned, while this time last year 753 homes were auctioned.
Sydney recorded a clearance rate of 61.3% for the final weekend in September, its highest since the week before Easter (April 10) when 61.7% of auctions were successful. The higher clearance rate also meant Sydney’s withdrawal rate fell from 20.9% the previous week to 18.3% last week.
Sydney brokerage Sphere Loans director Mirasol San Esteban (pictured above left) said she had noticed an increase in listings in her local area of Parramatta.
“I think the increase in local listings is a result of rising interest rates as many cannot sustain their new mortgage repayments,” San Esteban said. “I think there are also many who want to take advantage of the equity they have gained over the last year resulting in selling their property to cash in on that growth.”
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San Esteban said she was working with clients to help secure a range of different properties.
“At the moment, I am mostly working with owner occupiers looking to buy a property to live in as opposed to investors,” she said. “I think the market will change next year when the rate rises settle down and the market gains more confidence.”
CoreLogic economist Kaytlin Ezzy (pictured above right) outlined the areas of Sydney which had experienced the highest auction clearance rates.
“The Eastern Suburbs are leading with a 71.3% clearance rate, closely followed by Ryde at 70.7% and the Outer West and Blue Mountains at 70.0%,” Ezzy said. “However, the weaker locations include the Southwest on 43.2%, Blacktown at 53.3% and North Sydney and Hornsby on 56.6%.”
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Ezzy said there were 1,660 auctions across the combined capitals scheduled to go under the hammer this week.
“Capital city auction volumes are -16.4% lower than this time last year (1,986) and -24.6% below the 2,203 auctions held two weeks prior,” she said. “We expect this week’s lower auction activity is likely due to the Labour Day long weekend in ACT, NSW and South Australia and the Queen’s Birthday long weekend across Queensland.”
Ezzy said Melbourne experienced a rise above the 1,000 mark over the week ending September 18 before plummeting to 130 last week – its scheduled auction activity was back to normal this weekend.
“There are 828 homes set to go under the hammer in Melbourne this weekend,” she said. “Outside of Perth, Melbourne is the only capital city to record a rise in auction volumes both week on week and compared to this time last year (2.9%) when 805 auctions were held (under lockdown conditions).”
Looking to the other capital cities, Ezzy said week-on-week auction activity was expected to decline across Canberra (-47.0%), Brisbane (-12.2%) and Adelaide (-8.7%).
“Brisbane has 122 homes scheduled for auction, Adelaide has 105 and Canberra with 61,” she said. “There are 19 homes scheduled for auction across Perth, up from eight the previous week, while auction activity across Tasmania is expected to hold steady with two auctions scheduled to occur this week.”
Ezzy said the combined capital city clearance rates held around 60% for the second consecutive week.
“Sixty per cent (60.0%) of auctions reported a successful result last weekend,” she said. “The previous week recorded a final clearance rate of 60.1% while this time last year, 80.6% of auctions held across the capitals were successful.”
