Canberra has recorded its highest auction volume since CoreLogic records began in 2008, with each week showing more homes going under the hammer than the week before.
The latest data shows the ACT’s combined auction market was up 8.2 per cent, with 3,562 homes put under auction last week, compared to the previous week’s 3,292 homes.
CoreLogic said it’s unlikely Canberra has reached its peak, and due to pent-up supply and seasonal factors, auction volumes are expected to rise throughout the rest of November.
With such high volumes, the preliminary clearance rate has slipped to 79.9 per cent, which is the first time it’s been below 80 per cent in nine weeks.
McGrath Real Estate Canberra agent Justin Taylor said his auction over the weekend reflected CoreLogic’s statistics for the Canberra market.
“Personally, over the past 12 weeks I’ve had a 100 per cent clearance rate but the auction I had over the weekend was the first one to pass since then; however, it was subsequently agreed on price and is due to exchange contracts within the next 48 hours, so it did end up selling anyway,” Mr Taylor said.
“For our whole office, we had a 100 per cent clearance rate for the past 11 to 12 weeks, and we had two pass on Saturday, so it’s in line with the slight drop in Canberra’s overall clearance rates.”
Although the lower clearance rate may concern some Canberra sellers, Mr Taylor said it’s nothing to worry about.
“What I’ve noticed is the clearance rates in Canberra being down are a reflection of the big influx of houses coming onto the market in the last three weeks. The increased supply is obviously going to have an impact on the market,” he said.
“Normally, clearance rates are close to around 50 to 55 per cent, so people need to be mindful that an above 75 per cent clearance rate is considered strong and a seller’s market.”
Mr Taylor puts the increase in auction numbers down to pandemic restrictions easing and the hot market.
“The increase is 100 per cent because of lockdown ending and people putting their houses up for auction to take advantage of the strong market,” he said.
“No one can pick when the heat’s going to come out of the market, so people want to catch the tail end of how hot it’s been.
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