Auctions Gather Pace

Auction clearance rates have hit a four-week high with increased activity across the major capital cities.

The preliminary clearance rate hit 73.8% last week, after 2662 homes were put under the hammer.

According to Cotality this is the highest number of properties offered for auction since early June, when 2,918 properties were offered for auction.

And the coming weekend is expected to be even stronger with more than 3,200 homes scheduled for sale.

Melbourne is the busiest auction market, with 1168 homes offered last week and a clearance rate of 74.4%. Sydney had 1082 properties go under the hammer and a clearance rate of 74.5%.

Brisbane only had 198 properties go to auction and a clearance rate of 70.7%.

In the ACT, the clearance rate rose to 66.2%, up from 61.5% the week before, while Adelaide was 77.4%.

Domain head of research, Nicola Powell, says the solid clearance rates are an indicator that prices are going to continue to rise through spring.

“(It) really shows that the depth of demand is there. We’re now well into spring and auction volumes are much higher.”