Auction clearance rates hit six-year low in Australian capitals

Clearance rates in Australia's capital cities have fallen to a six-year low, with preliminary Cotality data showing 47.4% of homes that went to auction sold in the week ending Sunday 21 June. The weighted average masks variation across cities: Sydney cleared 47.4% of auctions with 166 homes withdrawn, Melbourne 50.6%, Brisbane 33.3%, Perth and Adelaide 40%, and Canberra 47.1%.

Those levels were last seen in April 2020. Annabelle Mezieres, an economist at Cotality, said the property company expects auction rates to ease even further: “Auction volumes look set to ease further over the coming weeks, partly a seasonal trend but also likely in response to weaker selling conditions,” she wrote in a statement, noting nearly 24% of scheduled auctions were withdrawn and nearly half, 48%, sold before going under the hammer.

The data comes less than a week after the Reserve Bank kept interest rates on hold at 4.35%, a decision that will still see many mortgage holders on much higher repayments than earlier this year.

Australia, Australian capital cities

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