Auction activity increased this week and that trend looks set to continue, with CoreLogic tipping there will be a further rise in volume next week as the countdown commences until Christmas.
CoreLogic noted 2266 auctions took place across the capitals this week, in what was the busiest week of activity since late June.
Volume was 4.4 per cent higher than last week, but still well below this time last year when 3720 auctions took place.
“With 1790 results collected so far, the combined capital’s preliminary clearance rate rose three percentage points, with 63.1 per cent of auctions returning a successful result,” CoreLogic said.
Last week, a preliminary clearance rate of 60.1 per cent was recorded and later revised to 57.6 per cent at final figures, while this time last year, 70.3 per cent of auctions were successful.
“Auction activity is set to rise as we approach the peak in seasonal activity, with around 2450 auctions scheduled to be held,” CoreLogic said.
“Close to 1000 auctions are scheduled for both Sydney and Melbourne next week, providing a timely test of the market’s depth of demand.”
Across Sydney, 766 homes went under the hammer this week.
This was a 1.2 per cent decrease in volume compared to last week, however the city’s clearance rate rebounded with 67.5 per cent of the 634 results collected so far returning a successful result.
Last week’s preliminary clearance rate was 6.3 percentage points lower at 60.9 per cent and revised to 58.4 per cent at final figures.
“Despite the rebound in the preliminary rate, Sydney recorded the highest withdrawal rate since mid-September (20.8 per cent), but the portion of properties passed in at auction fell to its lowest rate of the year (11.8 per cent),” CoreLogic said.
This time last year, 1352 homes were taken to auction across the city, and a final clearance rate of 68.7 per cent was reported.
Melbourne was again host to the busiest auction market this week, with 981 homes auctioned across the city.
The previous week saw 938 homes go under the hammer, while this time last year, 1657 auctions were held.
With 817 results collected so far, Melbourne’s preliminary clearance rate is at 65.5 per cent, with CoreLogic noting the initial success rate has now held in the 60-70 per cent range for 17 consecutive weeks.
This week’s preliminary clearance rate is 3.2 percentage higher than last week’s preliminary rate of 62.3 per cent, which revised to 60.6 per cent at final numbers, but is still 3.1 percentage points below the portion of successful auctions held this time last year (68.6 per cent).
The smaller capitals
Across the smaller capitals, Brisbane hosted the busiest auction market this week (up 13.1 per cent), with 198 homes auctioned across the city.
This was followed by Adelaide (157) and Canberra (131), up 2.6 per cent and 20.2 per cent respectively.
With a preliminary clearance rate of 61.2 per cent, Adelaide had the most successful week amongst the smaller capitals, despite recording its lowest preliminary clearance rate in almost two years.
In Canberra, 50.6 per cent of auctions returned a successful result, while Brisbane recorded a preliminary clearance rate of 49.6 per cent.
In Perth, five of the 22 results collected so far returned a successful result, while the two auctions held in Tasmania this week were successful.
Domain has reported a preliminary clearance rate of 60 per cent after tracking 1857 auctions across the major capitals.
So far, results are in for 1222 of those auctions, with 733 properties selling (to the value of $594.1 million), while 193 properties were withdrawn.
Last week, the final clearance rate settled at 56.6 per cent after 1762 auctions took place.
Results were provided for 1524 of those auctions, with 863 properties selling (to the value of $721.7 million), while 199 properties were withdrawn.
This time last year, the clearance rate was 67.1 per cent after 2687 auctions took place.
Results were provided for 2532 of those auctions, with 1698 properties selling (to the value of $2524.2 million) while 363 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 69 per cent after 681 auctions took place in the harbour city.
So far, results are in for 420 of those auctions, with 290 properties selling (to the value of $286.5 million), while 91 properties were withdrawn.
Last week, Sydney’s final clearance rate was 55 per cent after 669 auctions were held.
Results were provided for 545 of those auctions, with 300 properties selling (to the value of $294.4 million), while 111 properties were withdrawn.
This time last year 1041 auctions took place in Sydney, resulting in a clearance rate of 66.8 per cent.
Results were provided for 972 of those auctions, with 649 properties selling (to the value of $1261.5 million), while 152 properties were withdrawn.
This week there were 872 auctions in Melbourne, resulting in a preliminary clearance rate of 57.5 per cent.
So far, results are in for 645 of those auctions, with 371 properties selling (to the value of $258.2 million) while 77 properties were withdrawn.
Last week, Melbourne’s clearance rate was 58.9 per cent after 822 properties went to auction.
Results were provided for 744 of those auctions, with 438 properties selling (to the value of $338.7 million), while 71 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 63.7 per cent after 1239 properties went to auction.
Results were provided for 1162 of those auctions, with 740 properties selling (to the value of $947.2 million) while 183 properties were withdrawn.
Ray White results
The Ray White Group noted agents and auctioneers around the country could sense an urgency in the air this weekend as the clock ticks down to the end of the year, with buyers putting their best foot forward to snap up properties.
The real estate group reported a preliminary clearance rate of 53 per cent nationally, with Adelaide the standout city coming in at 75 per cent.
Ray White conducted 283 auctions nationally on Saturday.
On the same Saturday last year, 237 auctions were conducted, with the group stating volume is up, giving more choice to prospective buyers looking to secure a piece of the property market.
Average registered bidders per auction sat at a healthy 3.3 nationally.
The city of high bidder numbers, Adelaide, had on average 7.1 registered bidders per auction, while 30 Paget Street, Ridleyton had 25 registered bidders, with eight actively bidding.
The group said real estate agents around the country commented on buyers and sellers becoming comfortable with the new market conditions, off the back of an unusual and record-breaking 2021.
The highest sale of the day was 19 Henry Street, Queens Park, NSW which sold under the hammer for $5.95 million.
Ray White Park Coast East agent Harrison Jones said the result, coupled with there being eight registered bidders, was an indication of the strength in the prestige market.
Ray White New South Wales chief auctioneer Alex Pattaro said he continued to see positivity in the Sydney market.
“Buyer activity remains consistent and prices are starting to level out,” he said.
“A lot of bidders are now pushing their limits to secure a property before the end of the year. The auction process remains critically important; ensuring a premium price within the shortest amount of time,” Mr Pattaro said.
Ray White Victoria’s newly appointed chief auctioneer Jeremy Tyrrell said while the weather was dark, gloomy and wet, the auction market was a great deal brighter with stronger buyer activity seen across the board.
“Some eight out 10 auctions saw bidding action, indicating buyers are still hungry to purchase before Christmas, which is only five weekends away.
“Actually, it’s more like four for the real estate market as Christmas Eve falls on a Saturday. Will we see any auctions on Christmas Eve? We’ll need to wait and see,” he said.
“Clearance rates have also remained relatively consistent as sold properties at auction hover around 60 per cent.
“This week did see an increase in the number of auctions scheduled, as it tipped over 200 for the first time in the last eight weeks.
“This gives buyers more choice and December 10 is shaping up to be a Super Saturday with early numbers looking strong.”
Ray White South Australia chief auctioneer John Morris said, while auction day clearance rates might be dropping slightly to around the 55-60 per cent mark, the post auction clearance rate within two weeks, was above 85 per cent.
“Days on market for an auction property is around 25 in South Australia. The days on market for a non-auction property is on average 50 days,” Mr Morris said.
“If you take your property to auction, you are in for a much quicker turnaround. Ray White held 41 per cent of all auctions throughout the state this weekend.
“We are the competition creators, and we believe that auction is still the best method of sale if your goal is to sell well and quickly.”
Ray White Queensland has now ticked over 6000 auctions for the calendar year 2022.
“We have closed in on 40 per cent market share for auctions in Queensland,” Mr Croft said.
“Auction volume for November has softened slightly but the limited supply is contributing to the best auction clearance rate that we have seen for some time at 65 per cent last week.
“We have some 5.4 registered bidders per auction which sends a clear message that the limited stock is attracting a good level and quality of buyers.
“We anticipate this trend to continue into December.
“People who want to make that move before Christmas really need to be listing now with strong auction agents around the river city.”