Pre-Christmas auction rates remain strong

by Miklos Bolza20 Dec 2016
In the year’s final week for auction reporting, CoreLogic has found the year-on-year statistics for clearance rates and auction activity have remained relatively strong.
While the combined capital city clearance rate fell slightly to 70.5% from last week’s peak of 71.6%, this was much higher than the clearance rate of 59.4% reported in the same week last year.
Likewise, there were 2,722 reported auctions this week, a decrease from the 3,432 recorded the week before. Again, this was stronger than the 1,818 auctions held in the same week of 2015.
Looking at individual results for the nation’s capital cities, clearance rates were highest in Sydney and Melbourne which recorded 74.1% and 75.7% respectively.

In Melbourne, the number of homes taken to auction this week (1,286) was far above figures in the same time last year (875). The Inner South region recorded the highest clearance rate in the city reaching 84.4%.
For this week in Sydney, the number of auctions held was 874 – again up from the figure of 456 from the same period last year. The Northern Beaches recorded Sydney’s highest clearance rate of 90.2%.
In Brisbane, the clearance rate was 45.7% while the Gold Coast recorded a rate of 47.8%. Adelaide saw a clearance rate of 61.4% while Perth only reached 30%. Finally, Canberra recorded an average rate of 65.5%.

As for what would happen in 2017, Brogan told Australian Broker it depended on whether the market could regain its momentum once February commenced.
“Next year what we need to look out for is what’s going to be happening with mortgage growth. We’ve already had a couple of instances where we’ve seen an increase in interest rates and maybe some of the fixed rates will be adjusted upwards a little.”
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