Clearance rates down as number of auctions rise across Australia

Houses by the sea.

Eased restrictions and growing chatter about an interest rate hike have encouraged more vendors to put their homes on the market, but auctions are no longer returning the strong results they were throughout the year.  

According to property research firm Corelogic, 3,562 capital city homes went under the hammer in the week ending 14 November — up 8.2 per cent from the previous week when 3,292 went to auction.

But the increase in supply has caused clearance rates to dip. Last week, CoreLogic recorded a preliminary clearance rate of 75.5 per cent across capital city markets — the fifth consecutive week that figure has fallen. 

In Sydney, 1,290 auctions took place, with 75.1 per cent of the 1,086 results recorded so far resulting in a sale. At the same time, 13.0 per cent of properties were withdrawn from auction, marking the highest withdrawal rate since mid-August.

In Melbourne, the number of homes taken to auction was also up (1,556 compared to 1,398 in the previous week), but unlike other capital cities, the preliminary clearance rate rose by 2.1 per cent.

So far, 74.1 per cent of the 1,324 auctioned homes have returned a successful result. Last week, Melbourne recorded a preliminary clearance rate of 72 per cent, which was later revised down to 67.7 per cent. 

Capital city properties listed.
Data from CoreLogic.

Meanwhile, preliminary clearance rates in Canberra and Adelaide have dipped below 80 per cent for the first time in more than two months. Of the auctions that have been recorded so far, 79.9 per cent in Canberra and 77.8 per cent in Adelaide were successful.

CoreLogic researcher Kaytlin Ezzy said the increase in auction activity is likely to continue as a growing number of vendors regain confidence in current market conditions.

“With lockdown restrictions having eased in Sydney, Melbourne and Canberra, auction volumes have increased by 79.4 per cent since the first week of October,” she said.

“With each week outperforming the last, it's unlikely that auction volumes have reached their peak. Due to a combination of pent-up supply and seasonal factors, auction volumes are set to rise further through the second half of November.”

For more information about mortgage and lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated 25 January 2022

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Smart Booster Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Details
  • Mozo Expert Choice Badge
    UHomeLoan - Discount Offer
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    Details
  • Mozo Expert Choice Badge
    Celebrate Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a. variable
    1.89% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Details
  • Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Same low variable rate for all. No upfront or ongoing fees. Approval in minutes not weeks with a fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet (Apple and Google Pay). Refinance only. 25% deposit or equity required.

    Details
  • Mozo Expert Choice Badge
    Variable Home Loan Special
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.