Sellers in Adelaide are the most likely to achieve a good result at an auction, but for their cousins in Perth, the latest auction figures could be concerning.
Of the 198 Perth houses taken to auction in spring to date, only 30.8 per cent have sold, or cleared, at auction.
That’s down from 44.4 per cent over the same period in 2017, the latest figures from research group, CoreLogic reveal.
It’s not just Perth that’s struggling, either. As CoreLogic analysts explained, auction conditions across all capital cities are at their most “sombre” since 2012.
In fact, across all capital cities, half of all houses auctioned in the last eight weeks have failed to sell. It’s a similar story for apartments, with only 53.9 per cent clearing auction in the last eight weeks. That’s down significantly from the same period in 2017, when 67.7 per cent of apartments were clearing auction.
“The lower year on year results is hardly a surprise given home values have been in decline for 12 consecutive months now, and if our weekly clearance rates over the past four weeks are any indication it’s likely this will weaken further,” the research analysts warned.
Even Adelaide’s current clearance rate (61.3 per cent) is down from this time last year (62.5 per cent), despite having the highest clearance rate out of all capital city markets.
“Traditionally coming out of winter, the months following are usually seen as an optimal time to sell, with an increase in both the number of newly advertised homes for sale and weekly auction volumes,” the analysts said.
“However, while we’ve seen the usual seasonal uplift in the number of homes being auctioned, auction volumes are tracking at their lowest level over the spring to date period this year relative to the same eight week period over the past five years, while the combined capital clearance rate has seen further softening with less than half of homes selling at auction over the past four weeks.”
All capital cities
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