Vendors pause for public holidays, sparking three-month auction low

Vendors have decided to take a break.

Auction numbers for Saturday, September 24 have dipped to their lowest level in three months, due to the public holidays.

The nation paused on Thursday for a day of mourning for Queen Elizabeth, and Victorians have been treated to a four-day recess, with a public holiday on Friday to mark the AFL grand final on Saturday.

As such, national auction volumes have dropped by 43.7 per cent compared to last week, Domain data shows.

This Saturday, 995 homes nationally are scheduled to under the hammer, which is the lowest number since June.

However, as the auction capital of Melbourne focuses instead on one of the year’s biggest sporting events at the MCG, with auction volumes tanking by 90 per cent on last week, Sydney and Canberra will have more auctions this weekend than last Saturday.

The national clearance rate meanwhile has reached its highest level since April, Domain research has found.

“The run of higher clearance rates compared to winter indicates that seller price expectations are adjusting to meet buyers’,” the Domain weekly auction preview report said.

Brisbane, Adelaide and Melbourne experienced improved clearance rates, week-on-week.

Melbourne’s clearance rate clocked its largest weekly jump since April, and Adelaide’s nailed above 75 per cent for the first time since April, “proving it continues to reign as the best-performing city”, Domain found.

As the traditional spring selling period rolls onwards, auction numbers are expected to balloon.

Dr Nicola Powell, Domain chief of research and economics, anticipates the market will stablise as it ventures deeper into spring.

“We’ve seen a slight drop in auction activity this week due to a few public holiday weekends across the country,” she wrote in the preview report.

“Across the combined capitals, we continue to see the clearance rate rise, with our current 61.1 per cent being the highest since April.

“The increasing rate over the last few weeks is showing that both buyers and sellers are meeting in the middle after a disconnect over winter.

“We’re also seeing more buyers become accustomed to the new interest rate environment and we expect to see a stable spring selling season unfold.”