Auction activity ramped up this week with CoreLogic reporting 2537 homes were taken to auction across the combined capital cities, while the clearance rate held steady at 74.6 per cent.
They note this high volume looks set to continue over the Christmas break, with a further 2300 auctions tipped to take place in the coming week.
This week’s volume was higher than the 2085 auctions held last week, however lower than the 2804 held over the same week last year.
This week the preliminary clearance rate came in at 74.6 per cent, compared to 75.1 per cent last week. Final figures saw last week’s clearance rate revise down to 69.9 per cent, with CoreLogic noting this week’s final results may be slightly below this.
“Over 1000 homes were taken to auction across both Melbourne and Sydney over the week, the busiest week the cities have seen since early April,” CoreLogic said.
Melbourne saw the preliminary auction clearance rate remain stable under higher auction volumes, with 73.5 per cent of homes selling after a virtually unchanged 73.6 per cent preliminary result last week.
That figure later revised down 67.7 per cent at final collection.
There were 1131 properties auctioned across the city over the week, up from the 899 the week prior, although lower than the 1405 auctions held one year ago.
Sydney was host to 1006 auctions this week, up from last week when 867 auctions were held, and also higher than the 875 auctions one year ago.
A preliminary auction clearance rate of 76.5 per cent was achieved in the harbour city, down on the 80.1 per cent preliminary figure last week which later revised down to 74.1 per cent at final result.
The smaller capitals
Across the smaller markets, Canberra recorded the highest preliminary clearance rate of 87.2 per cent across 113 auctions, followed by Adelaide with a preliminary clearance rate of 76.1 per cent across 96 results.
“Typically auction markets would be winding down after the second week of December, however this year auction activity is set to remain high leading into the festive period, with CoreLogic expecting around 2300 auctions to be held over the coming week,” CoreLogic said.
Melbourne again overtook Sydney as the major auction capital this week with Domain reporting 2078 auctions were held in the major metropolitan markets.
This week the preliminary clearance rate also remained healthy with 74.5 per cent of properties sold, according to the data that’s been provided so far.
Domain notes results are in for 1607 of the auctions held at the weekend, with 1198 properties selling (to the value of $964.9 million), while 167 properties were withdrawn.
Last week, the final national clearance rate settled at 67.8 per cent after 1713 properties were listed for auction. Results were provided for 1579 of those auctions, with 1070 successfully selling (to the value of $881.8 million), while 158 properties were withdrawn.
This time last year, the volume and value were higher, with 2333 properties going to auction and the clearance rate sitting at 65.3 per cent. Results were provided on 2112 of those auctions, with 1379 properties successfully selling (to the value of $1396.2 million), while 175 properties were withdrawn.
Domain’s data indicates 870 auctions were scheduled in Sydney at the weekend, with the preliminary clearance rate coming in at 76.4 per cent.
So far, results are in for 658 of those auctions, with 503 properties successfully selling (to the value of $480.1 million), while 80 properties were withdrawn.
Last week, Sydney’s volume was slightly lower at 782 properties listed for auction and the final clearance rate came in at 73 per cent.
This figure was achieved after results were provided for 715 of those auctions, with 522 properties successfully selling (to the value of $505.7 million), while 75 properties were withdrawn.
This time last year, Sydney saw 808 properties listed for auction, and a clearance rate of 70.3 per cent. In the same week last year results were provided for 707 of those auctions, with 497 properties successfully selling (to the value of $612.8 million), while 93 properties were withdrawn.
Melbourne’s volume surpassed that of Sydney this week, but remains below the numbers seen at the same time last year. This week Domain reports 979 properties were listed for auction and the preliminary clearance rate came in at 72.1 per cent.
So far results are in for 774 of those auctions, with 558 properties successfully selling (to the value of $405.9 million), while 79 properties were withdrawn.
Last week, Melbourne’s volume was a lower 728 properties scheduled for auction, and the clearance rate sat at 64.7 per cent. Results were provided for 680 of those auctions, with 440 properties selling to the value of $313.1 million), while 63 properties were withdrawn.
In the same week last year, Melbourne saw 1282 properties scheduled for auction and the clearance rate was 65.6 per cent. Results were provided for 1183 of those auctions, with 776 properties successfully selling (to the value of $703.9 million), while 63 properties were withdrawn
Ray White results
Ray White noted Super Saturday did not disappoint, with the property group selling 73 per cent of all properties booked for auction under the hammer with many top sales recorded across Australia.
The Ray White Group had 600 auctions booked nationally on Saturday – the highest volume on offer since pre-COVID in March, with 5.5 average registered bidders per property, and bidding on 92 per cent of all stock.
Ray White data also indicated sellers received 11.1 per cent more on average on auction day by selling under the hammer than selling prior.
New South Wales
With 146 auctions alone in Sydney at the weekend, Ray White NSW Chief Auctioneer Alex Pattaro said he had never seen such a strong market, and Ray White’s Sydney members cleared 75 per cent under the hammer.
“I personally called 10 auctions today, which is a record for even me, and I have lost my voice. The average number of registered bidders is sitting at 5.5 people per auction and 75 per cent of properties changed hands under the hammer,” Mr Pattaro said.
“I don’t want to sound like the Grinch but it almost feels like Christmas is getting in the way as so many buyers want to transact now but stock levels are easing off a bit,” he said.
“So many buyers still want to secure a property before Christmas. I would advise anyone thinking of selling early in the new year to list now as we are expecting a flurry of new listings in the second week of January.
“Why wait until 2021? The level of buyer inquiry now is unprecedented so why would you wait until there is more competition for buyers to choose from. Everyone is home this summer and there’s never been a better time to sell.”
Ray White Victoria and Tasmania CEO Stephen Dullens said buyers hit the streets on a beautiful Melbourne day as results once again exceeded sellers’ expectations.
The city recorded its highest volume of weekend auctions since March, with 115 properties booked to go under the hammer, and Ray White members reported record results where reserves were smashed and records were made.
“With 2020 rapidly coming to a close and selling days running out, buyers were out in force looking to secure their new properties with less than two weeks until Christmas,” Mr Dullens said.
“Ray White recorded a preliminary clearance rate of 79 per cent across Victoria this week from over 140 auctions conducted – volumes getting close to auction numbers last year.
“With Ray White auctions in Victoria being conducted right up until December 23 and commencing again from January 7, this is likely to be a different December and January for the real estate industry compared to previous years.
“While the days until Christmas rapidly diminish, there is no doubt the current strong conditions will see activity run later and start again earlier in 2021.”
Ray White Queensland Chief Auctioneer Mitch Peereboom said it was an excellent day of auctions wrapping up what was a great week for the leading network.
“The number of registrations in terms of average registered bidders has remained consistent and that’s going through to some excellent clearance rates and we’re seeing some outstanding prices as a direct result of the competition,” Mr Peereboom said.
“As we look forward to now and Christmas, we know that we’ve certainly got a number of auctions coming up with our auction volume up some 20 per cent on this time last year.
“This is certainly showing that sellers are taking advantage of the market conditions and that’s going to be flowing through right up until auctions into Christmas which then sets us up for a strong start to 2021.”
Ray White South Australia Chief Auctioneer John Morris said the date of 12/12/2020 might have seemed ominous but had proven auspicious for many vendors who chose to take their property to auction this weekend with some great results under the hammer.
“We are following on from a great week of auctions last week where we had 90 per cent of all auctions with bidding, close to a 70 per cent clearance rate and 5.4 average registered bidders per auctions in South Australia,” Mr Morris said.
“We have 72 auctions this weekend and 23 of them are Ray White giving us a 32 per cent market share in South Australia. We are finishing off the year off with a bang. The year 2020 has been a wild ride but let’s look forward to 2021 and getting back to a bit of normality.”