Clearance rates sink to lowest since 2012

CAPITAL city housing auction clearance rates have hit their lowest level since June 2012 and are almost certain to keep sliding as more properties hit the market for the spring selling season.

Core Logic data shows just 42.7 per cent of the 1541 auctions in Australia’s capital cities resulted in a sale during the week straddling October and November and it is feared last week may have fared worse once final results are tallied.

Last week’s preliminary clearance rate for the 2384 auctions nationwide is sitting at 46.8, down from 62.8 per cent at the same time last year as Melbourne and Sydney markets are hit with a downturn.

“It’s likely that as final results are collected, this week’s final clearance rate could come in lower again (than 46.8 per cent), potentially nudging the low 40 per cent range,” CoreLogic said in its weekly release.

“This is a considerably softer trend to what was seen over the same period last year when clearance rates were tracking around the low-mid 60 per cent range.”

The national weighted average clearance rate has been below 50 per cent for seven consecutive weeks with Sydney and Melbourne attracting most of the headlines as the cities’ soaring values fall amid a tighter lending environment and stagnant wage growth.

Last week, however, Sydney’s 48.4 per cent preliminary clearance rate, and Melbourne’s 48.3 per cent, were the highest of the capital cities. Just 32.1 per cent of 139 Brisbane auctions cleared, while 47.5 per cent of 122 Adelaide properties sold.

Major regional auction centres all had a clearance rate below 50 per cent, with the Sunshine Coast and Gold Coast clearing just 31.8 per cent and 34.5 per cent.