Upcoming auctions: So far this year, auction volumes have been rising at a slower rate than last year which may be due to a softening in vendor confidence as housing market conditions settle down after more than three years of strong capital gains. So far 718 auctions have been held this year, compared to 921 at the same time last year.
The final week of December through to the end of January is typically seen as a seasonally quieter period across the housing market with both auction and private treaty numbers falling sharply. As buyers and sellers start to become more active CoreLogic RP Data will then have a much better gauge on how the housing market is set to perform over the first quarter of 2016.
This week, CoreLogic RP Data is tracking 760 auctions to be held across the capital city markets, with Sydney and Melbourne accounting for 60% of all scheduled auctions. The Brisbane and Adelaide auction markets are remarkably close in numbers to Sydney and Melbourne, given the low volumes across Australia’s two largest auction markets.
Below is a summary of this week’s activity and a comparison with the same week one year ago:
Sydney: 224 auctions (compared to 421 last year)
Melbourne: 232 auctions (compared to 255 last year)
Brisbane: 99 auctions (compared to 109 last year)
Adelaide: 98 auctions (compared to 94 last year)
Perth: 36 auctions (compared to 31 last year)
Canberra: 66 auctions (compared to 69 last year)
Each week CoreLogic RP Data monitors the suburbs with the highest volume of auctions. These suburbs are usually located within the capital cities, however this week, given the number of auctions being held is still low, two out of the three suburbs with the highest volume of auctions are outside of the capitals.
Nelsons Bay located in New South Wales’ Hunter region, Buderim in Queensland’s Sunshine Coast and the Melbourne suburb of Lalor will each host 6 auctions this week.
Last year, clearance rates across the combined capital cities finished December around the high 50% mark after having stayed above the 70% mark for 31 consecutive weeks (71.3% of all auctions held last year were successful). With the softening trend in auctions clearance rates seen over the final quarter of 2015, it will be interesting to see if the trend deteriorates any further.