If slow and steady wins the race, Adelaide’s auction market is a winner compared to others nationwide.
According to CoreLogic data, the auction clearance rate fell across the combined capital cities last week to 60 per cent — its lowest point since December 2015/January 2016.
In Adelaide however, the clearance rate remained more or less where it has been for most of the year, at 64.5 per cent.
CoreLogic Residential Auction Market Commentator Kevin Brogan said Adelaide’s auction rate generally hovered between 60 and 70 per cent.
“We haven’t seen that dip in clearance rate in Adelaide,” Mr Brogan said.
“Stepping back it would be fairly solidly in the mid 60s, almost for the whole year.
“We’ve seen a couple (of weeks) where it’s gone well — the second of April had a high clearance rate of 76.3. The lowest was the third of September at 50 per cent.”
Mr Brogan said Adelaide’s auction numbers and clearance rate remained largely unchanged compared to this time last year, unlike the Sydney and Melbourne markets.
“It’s a good news story for Adelaide,” he said.
“If you look at what’s been happening in Sydney and Melbourne, last year they had a clearance rate of almost 80 per cent.
“Now, Sydney is down to 61.8 per cent and Melbourne is 69.6 per cent.
“They’ve seen a significant softening in auction market conditions. In Adelaide we’re a fairly stable market.”
In another positive for the City of Churches Mr Brogan said our residential transaction numbers had risen slightly in recent weeks, unlike our eastern states counterparts.
“Our year-on-year transactions in annual sales are up by 2.1 per cent,” he said.
“That doesn’t sound exciting but in Sydney it’s down 3.6 per cent and in Melbourne it is down by 11.6 per cent.
“Adelaide property owners should be happy -certainly it’s a story of sustainability.
“Long term we’ve been performing at a sustainable level of growth for some time.”
Auction numbers wise, Mr Brogan said anything over 100 constituted a “good week of auctions” in Adelaide.
As such we are headed for a good weekend of auctions this weekend, with 144 properties going under the hammer in Adelaide this week, following on from 151 last week.