Capital city auction activity has ramped up after the seasonal slowdown, with 891 homes taken to auction this week resulting in a preliminary clearance rate above 80 per cent.
CoreLogic notes this weekend volume is considerably higher than the 625 auctions held in the same week last year, and while the remaining results are yet to be collected, the final result is still likely to come in higher than the 61 per cent final clearance rate seen last year.
Melbourne was the busiest auction market this week in terms of volumes, with 388 auctions held across the city, returning a preliminary auction clearance rate of 83 per cent.
This was virtually on par with Sydney’s 82.9 per cent preliminary result across a lower 272 auctions.
Compared to the same week last year, both volumes and clearance rates are higher across the two largest markets with Melbourne recording a 65.8 per cent final clearance rate across 211 auctions and Sydney a 72.9 per cent success rate across 158 auctions one year ago.
Across the smaller cities, the performance was varied with both Adelaide and Canberra recording preliminary clearance rates above 80 per cent.
Perth saw 66.7 per cent of homes sold, although volumes remain quite low across the city, while around half of the auctions across Brisbane were successful.
“Overall, this week’s preliminary auction results indicate the housing market is resuming last year’s trend of strong selling conditions and rising home prices,” CoreLogic said.
“Over the coming weeks we are expecting the number of auctions to rise further, providing a timely test of the market’s depth.”
Domain also reported strong clearance rates on the back of volumes that were higher than this time last year.
They noted 690 properties went to auction in the major capitals, returning a preliminary clearance rate of 79.9 per cent.
So far results are in for 537 of those auctions, with 429 successfully selling (to the value of $345.2 million) while just 26 properties were withdrawn.
Last week, they reported just 177 properties went to auction, returning a clearance rate of 57.8 per cent. Results were provided for 166 of those auctions, with 96 properties successfully selling (to the value of $66.4 million), while 10 properties were withdrawn.
In the same week last year volume was significantly lower with 410 properties taken to auction and a final clearance rate of 63.7 per cent.
Results were provided for 369 of those auctions, with 235 properties successfully selling (to the value of $205.5 million), while 39 properties were withdrawn.
Sydney’s volume was slightly less than Melbourne’s, according to Domain data, with 250 properties taken to auction across the harbour city, while the preliminary clearance rate came in at a healthy 79.6 per cent.
Results have so for been provided for 206 of those auctions, with 164 properties successfully selling (to the value of $159.2 million), while just 11 properties were withdrawn.
Last week, Domain’s data indicates 30 properties went to auction and 63.3 per cent successfully sold. That was based on results for all 30 auctions held and the fact 19 properties transacted under the hammer (with a combined value of $16.3 million). Just one property was withdrawn.
In the same week last year, only 142 Sydney properties were taken to auction, and the clearance rate came in at 72.5 per cent. This was based on results provided for 131 of those auctions, where 95 properties successfully sold (to the value of $107.5 million), while 14 properties were withdrawn.
Melbourne is back in the auction market and kicked off the year with a bang, with 308 properties taken to auction and a preliminary clearance rate of 81.9 per cent.
So far, results are in for 238 of those auctions, with 195 successfully selling (to the value of $148.8 million), while 10 properties were withdrawn.
Last week saw 92 properties go to auction, resulting in a clearance rat of 65.1 per cent. This was based on results provided for 86 of those auctions where 56 properties successfully sold (to the value of $43.2 million), while eight properties were withdrawn.
In the same week last year, just half the current volume went to auction, with 139 properties going under the hammer, resulting in a 63.5 per cent clearance rate.
Results were provided for 126 of those auctions, with 80 successfully selling (to the value of $60.4 million), while 13 were withdrawn.
Ray White results
Ray White believes the Australian property market has not skipped a beat, picking up from where it left off last year with record numbers of buyers attending auctions and open homes across the country at the weekend.
Their data indicates numbers have increased by more than 30 per cent since December with many buyers reporting they simply do not want to wait as they fear further price rises are coming.
The Ray White Group is reporting a preliminary national auction clearance day of 77 per cent this weekend after 253 auctions were booked across Australia on Saturday.
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said the first real weekend back on the auction round was “the best market we have seen in years”.
He notes the Sydney preliminary clearance is sitting at 95 per cent of the 26 auctions which were conducted in the harbour city on Saturday.
“The property market has taken off where it left from last year and we have seen a rush of buyers at opens and auctions fiercely competing for properties to secure their dream homes,” Mr Pattaro said.
“The market definitely requires higher stock levels but if we saw a jump in stock I don’t think it will mean prices will fall because the sheer volume of activity, confidence and engagement in the market is the best we have seen in years.”
In the nation’s capital, Ray White Canberra held its Summer Auction Event which saw 28 properties sell under the hammer for an exceptional 73.6 per cent clearance rate.
In total there were 200 registered bidders at the auction which saw more than $20.6 million worth of property exchange hands across the 28 lots.
“It was an unbelievable vibe today. We have done this for four years in a row and we needed a bigger venue to be COVID safe and so we used this vacant warehouse next door to our office and we ended up packing it out,” said Ray White Canberra Chief Operating Officer and Founder, Scott Jackson.
“This was the best bidder numbers we have seen in 24 months. Tonight we have happy home buyers and sellers all around. Like the rest of the country, the unit market is still soft but the house market from renovators to renovated, is red hot.”
The final weekend in January saw a significant increase in auction activity across Victoria, with the Ray White group conducting 130 auctions this week.
Registering a preliminary clearance rate above 87 per cent, this is a sign that the significant market activity that followed record months has been sustained by Ray White Victoria.
Ray White Victoria & Tasmania CEO Stephen Dullens said the market remained strong and both buyer and sellers out in force, taking advantage of the strong conditions after the challenges of Melbourne’s lockdowns in 2020.
In Adelaide, Ray White South Australia Chief Auctioneer John Morris said buyer numbers were off the charts.
“It looks like the last quarter of 2020 is going to repeat itself in the first quarter of 2021 and we saw records tumble,” he said.
“Coming off the back of the momentum of 2020 where we conducted in excess of 45 per cent of all auctions, the momentum in the market is just not slowing down. This is the busiest start to the year I have ever experienced.”