Melbourne held 670 auctions last week, 45.6 per cent fewer than a year earlier, as the national preliminary clearance rate fell to a three-month low. The figures, reported by the ABC on 5 October from Cotality data, showed Melbourne had the largest annual decline in auction volumes among the capital cities.
The city's auction count nevertheless rose 136 per cent from the previous week, when the AFL grand final long weekend had reduced activity. The weekly rebound did not erase the much lower annual volume, with Melbourne contributing 670 of the 1,223 auctions held across the capital cities, according to the ABC.
Nationally, the preliminary clearance rate was 48.2 per cent, the second-lowest early reading of the year and the weakest since late June. Australian Associated Press reported that the equivalent reading a year earlier was 67.4 per cent. AAP also noted that long weekends in several states and territories, along with Sydney's NRL grand final, affected the number of auctions.
MacroBusiness reported a Melbourne reading of 50.6 per cent, compared with 55.7 per cent in Sydney. AAP independently reported that both cities remained above 50 per cent in the early results.
Cotality research director Tim Lawless told AAP that the latest interest rate increase probably contributed to the weaker auction outcome. He pointed to reduced borrowing capacity and continuing confidence problems among prospective buyers.
The auction figures came alongside a rise in homes remaining on the market. The ABC reported that SQM Research counted 276,000 unsold homes nationally, 21.6 per cent more than a year earlier. In Melbourne, the number of homes available for sale was 30.3 per cent higher than a year before, according to the same reporting of SQM's data.
Older listings also increased nationally. Properties advertised for more than 180 days were up 10.5 per cent on a year earlier, the ABC reported from SQM's figures.
Ray White performance chief executive Thomas McGlynn told AAP that buyers and sellers remained willing to transact but did not always agree on price. He said buyers were prepared to compete, while also holding their position when a property did not offer the value they were seeking.
The clearance figures remain preliminary. Cotality's methodology includes known sales before, at or after auction and includes passed-in and withdrawn auctions among known results. The firm updates its figures as more results become available and publishes final clearance rates in its Thursday national auction market preview.
