Auction clearance rates continue to increase for the same duration last year, according to CoreLogic, with the latest national average of 79 percent well above the strike rate of 51 percent. Last week, 1,555 homes were taken to auction across the combined capital cities, returning a 78.6 percent preliminary auction clearance rate.
By comparison, last week there were 1,167 auctions, returning a preliminary clearance rate of 69.4 percent, before changing to a final clearance rate of 67.7 percent. Auction rates were smaller with 1,450 homes heading under the hammer across the combined capital cities over the same week last year, delivering a final auction clearance rate of just 51.2 percent.
Melbourne cleared 79 percent of its 717 auctions and 80 percent were sold of Sydney’s 578 properties auctioned. Canberra had the highest 90 percent success rate, although under the hammer there were only 48 houses.
62 percent of the 104 properties in Brisbane were cleared at the auction, a huge improvement on the 29 percent a year earlier. Adelaide unloaded 75 percent of the 82 properties under auction, while Geelong also achieved a good 90 percent result.
The outcomes were positive in regional areas, including the Central Coast 55 percent, the Mornington Peninsula 63 percent, the Hunter Valley 69 percent, Wollongong 61 percent and the Gold Coast 52 percent.
The clearance rates of the combined capital cities were around 75 percent in 2016 and 2017 until they started to fall, dropping from December 2018 to January 2019 to around 40 percent. Home equity loan on investment property prices have grown over the last year apart from a fall over the Christmas holiday season.