Home buyer demand is expected to be tested in coming weeks as the number of properties going to auction increases in Australia's capital cities.
CoreLogic reports that 2599 homes went under the hammer across all capital cities this week, returning a preliminary auction clearance rate of 72.9 per cent. That compared with 2590 auctions the previous week with a final sales clearance rate of 70.1 per cent.
Next week auction numbers are expected to lift about 14 per cent to be the biggest week of auctions so far this year.
“Clearance rates across the largest cities have mostly remained above 70 per cent since July, implying that vendors remain in a strong selling position,” CoreLogic says in its weekly market commentary.
It believes “fear of missing out” is again starting to feature at auctions.
“With advertised supply remaining low and buyer demand rising, FOMO has once again become a factor in the market as buyers sense some urgency to buy before prices rise further.
“With auction volumes set to rise, it will be important to see whether clearance rates can hold up under the increased level of supply being brought to market over the coming weeks.”
Melbourne had 1217 home auctions this week, with preliminary figures showing 73.2 per cent achieved sales, compared with 1242 auctions and final clearance of 74.3 per cent the previous week.
Sydney’s preliminary clearance for 934 auctions this week was 82.3 per cent, compared with 847 auctions and a final sales rate of 71.9 per cent.