Spring auction volumes hit lowest level since 2020

Spring auction volumes over the first six weeks of the season were the lowest since 2020, according to Cotality. Across the combined capitals, 1,781 auctions were held last week.

That was 46.9% higher than the previous week, when long weekends in most states reduced activity, but 31.2% lower than the same week a year earlier. Across the first six weeks of spring, volumes were also down 31.2% on the same period last year, reflecting weaker vendor activity.

Separate figures on selling outcomes showed conditions remained subdued. For the second week in a row, the combined capitals preliminary clearance rate stayed below 50%, at 48.8%, up slightly from 48.2% a week earlier.

The latest reading was close to levels seen in mid-to-late June, when the preliminary clearance rate fell as low as 47.4%. The figures point to a spring market that has yet to regain the momentum usually associated with the season.

Melbourne leads

Melbourne recorded the highest number of auctions among the capital cities, with 707 homes taken to market. That was 6.2% higher than the previous week, but 43.4% lower than the same week last year.

The city's preliminary clearance rate rose to 54.8% from 50.6% a week earlier. Even so, scheduled activity is expected to drop sharply this week, with auction numbers forecast to fall by about 34%.

The decline will coincide with the first auctions covered by Victoria's new reserve price disclosure rules. Cotality said it was too early to determine whether the changes were influencing seller behaviour, though the timing suggested some vendors may have brought campaigns forward or delayed auction decisions while the market adjusts.

Sydney and Brisbane

In Sydney, auction volumes rebounded after a long weekend reduced activity in the previous period. The city recorded 653 auctions, up 118% week on week, although that remained 33.9% lower than a year earlier.

Sydney's preliminary clearance rate fell 2.8 percentage points to 52.9%, its lowest result in ten weeks.

Brisbane posted one of the strongest increases in auction numbers, with 201 homes taken to auction. That was 45.7% higher than the previous week and 58.3% above the same week last year.

Despite the increase in supply, Brisbane recorded a preliminary clearance rate of 21.4%, its lowest result since April 2020, during the initial phase of the Covid-19 pandemic.

Adelaide and ACT

Adelaide's preliminary clearance rate improved to 46.8% from 41.5% the previous week. Auction volumes also doubled from 70 to 140, leaving activity 45.8% higher than the same week last year.

In the ACT, 66 auctions were held, up 127.6% on the previous week but down 37.7% from a year earlier. Of those, 36.4% had reported a successful result at the time of the preliminary count, making it the territory's second-lowest preliminary clearance rate this year.

Market pressure

The figures suggest lower volumes have not translated into firmer selling conditions across the capitals. Instead, weaker seller participation and low clearance rates have emerged together, pointing to caution among both vendors and buyers.

Activity is expected to ease again this week, with about 1,500 auctions scheduled across the capitals, roughly 15% fewer than the previous week. Sydney is the only major market expected to record an increase, at about 8%.

“You would have to go back to 2020, when pandemic lockdowns were in full swing, to find a quieter start to the season,” said Annabelle Mezieres, Economist, Cotality.