Auction clearance rate steady at 68.4%

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Auction clearance rates remained stable this week, with a preliminary weighted average clearance rate of 68.4% recorded across the capital cities, following a 68% clearance rate last week.

Weekly clearance rate, combined capital cities

Source: RP Data

RP Data says that the state of the national auction market in 2014 can be labelled as “healthy” because since the start of the year, there have been 42% more homes sold at auction compared to the same time last year.

In real numbers, this means that 36,608 homes were sold under the hammer this year, compared to 25,623 homes sold at auction last year.

Not surprisingly, the Sydney auction market has shown strength during this late winter period, and has been pulling its weight as a factor behind the robust performance of the national auction market. In Sydney, the preliminary average clearance rate was 76.7% this week, compared to 74.7% last week.

Capital city auction statistics (preliminary)

Source: RP Data

However, according to Australian Property Monitors, Sydney auction listings have dampened over recent weekends. APM’s Dr Andrew Wilson says that Sydney’s strong performance over winter will result in price growth, but will be below the ‘’boom-time’’ growth results experienced last year.

In Sydney, the inner west was the best performer, closely followed by the northern beaches, Canterbury Bankstown, the city and the east. The most expensive property sold at auction on the weekend was a five-bedroom property at Mosman, which sold for a sizable $5.06million.

Melbourne’s preliminary clearance rate was 67.7% compared to 69.6% last week. Listing numbers in Melbourne have also flattened over recent weekends. Melbourne’s south east was the best performer at the weekend, closely followed by the outer east, the north, and the inner south.

The most expensive property sold at auction in Melbourne was a five bedroom property in Brighton, which sold for $3.99million.

According to RP Data, the median house price across the combined capital cities this week came to $525,960, after 6,220 sales were made.

Capital city private treaty median prices

Source: RP Data

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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