The volume of scheduled auctions is reaching new heights across Sydney, Canberra and Adelaide this week, bumping the total to 4,354 auctions in combined capital cities – the busiest week since CoreLogic records began in 2008.
Last July and August saw low volumes due to a slew of withdrawals from harsh lockdown conditions. It floored in September with only 1,423 homes taken to auction.
Shortly after, the numbers started climbing a steady 10% per week until it eventually increased more than 200% today.
Aside from eased restrictions and seasonal factors, this upswing can be attributed to the rising popularity of auctions given low listing volumes and high buyer demand. This is especially true in smaller capitals such as Adelaide and Canberra, which set new records with 308 and 183 auctions scheduled, respectively.
Melbourne was the best performing market with 1,898 auctions this week, but the capital city fell short of its own record as it experienced only its fourth busiest week in CoreLogic history.
For Kaytlin Ezzy, research analyst at CoreLogic, the results aren’t surprising since late November is expected to be a busy period for auction activity, pandemic or otherwise.
“If previous years are anything to go by, the peak in auction activity for this time of the year generally occurs between the last week of November and the second week of December,” Ezzy said. “Considering housing market conditions remain firmly skewed towards the vendor, it’s likely auction markets will remain buoyant at least through the first two weeks of summer before auction activity slows approaching the festive season.”
Although the volume of auctions noted an upward trajectory, clearance rates were another matter altogether. It peaked at 83.2% in early October, now down to 70.3% this week. Nonetheless, clearance rates have remained above the five-year average of 64.2% since late August.
The previous CoreLogic record for busiest week in combined capital cities took place on March 25, 2018, with 3,990 auctions.