The preliminary clearance rate continues to defy expectations, holding above 70 per cent for the second week in a row.
Hot on the heels of the highest preliminary clearance rate since the beginning of the pandemic last week, this week 70.5 per cent of the auctions so far reported appear to have been successful.
CoreLogic notes this weekend, 1107 capital city homes were taken to auction and, of the 841 results collected so far, 70.5 per cent were successful.
“This week’s preliminary figure is down on the 72.4 per cent preliminary figure last week, which later revised down to 67.6 per cent by final collection,” CoreLogic said.
“Last week’s clearance rate was the highest final clearance rate since early March. This time last year, a higher 1278 capital city homes were auctioned with a final clearance rate of 71 per cent.
“The performance across the two largest capital cities remains mixed. Melbourne continued to record very subdued levels of activity, while Sydney volumes reached their highest level since the first week of April.
While volumes remained extremely low across Melbourne, there was a slight rise in the number of homes scheduled to go under the hammer this week.
There were 60 auctions scheduled across the city, returning a preliminary auction clearance rate of only 28.6 per cent.
Of the 49 results collected so far, 31 were withdrawn from the market or 63 per cent.
Of the 14 properties that did sell, 93 per cent sold prior to auction.
“While volumes did increase over the week, the high withdrawal rate, and high proportion of properties selling prior to the auction, suggest vendors remain reluctant to test the market through the lockdown period,” CoreLogic stated.
There were 815 Sydney homes taken to auction this week, returning a preliminary auction clearance rate of 74.8 per cent.
This was an improvement on last week’s preliminary figure of 72.4 per cent which later revised down to 67.5 per cent at final collection.
“In contrast to Melbourne, the number of auctions across Sydney has been consistently trending higher, with this week’s volumes the highest recorded since April,” CoreLogic reflected.
“One year ago, a higher 950 Sydney homes were taken to auction returning a higher final success rate (74.5 per cent).
The smaller capitals
Across the smaller capital city markets, Canberra recorded a preliminary clearance rate of 84.9 per cent, the highest of the smaller cities, Adelaide wasn’t far behind with 77.3 per cent of homes selling at auction over the week.
Domain’s results also reflected a “mixed market” with volume nearly as high as the same time last year, but the value significantly lower due to the absence of Melbourne.
This week they reported a preliminary clearance rate of 67.8 per cent after 921 properties were taken to auction.
Of those, 686 results were reported, 465 sales were made (to the collective value of $390.7 million), and 139 properties were withdrawn.
Last week, Domain returned a final clearance rate of 65.5 per cent after 749 properties were taken to auction, with 666 results reported, 435 sales made (to the value of $305.4 million) and 78 properties withdrawn.
This time last year 925 properties were listed for auction, resulting in a final clearance rate of 70.5 per cent and a value of $823.3 million. Of those, 872 results were reported, 615 sales were made and just 56 properties were withdrawn.
Sydney again accounted for the bulk of this week’s auction market, with 732 of the 921 properties listed for auction nationally hailing from the harbour city.
Of those, 545 results were reported, 380 sales were made (to the value of $338.9 million), and 109 properties were withdrawn, resulting in a preliminary clearance rate of 69.7 per cent.
Last week, Sydney clocked up a clearance rate of 65.2 per cent after 601 properties were listed for auction. Of those, 534 results were provided, 348 sales were made (to the value of $244.1 million), and 72 properties were withdrawn.
In the same week last year, Sydney returned a clearance rate of 74 per cent after 744 properties were listed for auction, 708 results were reported, 524 sales were made (to the value of $752.6 million), and 44 properties were withdrawn.
As Melbourne begins to emerge from lockdown, only a few property owners have tested the auction market, with just 32 properties taken to auction this week.
Of those, 28 results were provided, just seven sold (to the value of $2.2 million) and 17 were withdrawn, for a clearance rate of 25 per cent.
Last week, things reflected an even more bleak landscape, with just 12 homes listed for auction and a clearance rate of zero per cent.
Just six results were provided, only four homes sold (to the value of $2.3 million), and two properties were withdrawn.
Interestingly enough, this time last year also saw few homes taken to auction. In the same week in 2019, just 51 homes were listed for auction, results for 44 were provided, 32 sales were made (to the value of $27 million), and five were withdrawn
Ray White results
Closely mirroring the national trend, the Ray White Group booked a healthy preliminary clearance rate of 67.1 per cent this week.
They noted, Sydney was the star of the show with a strong preliminary clearance rate of 79.4 per cent.
They also saw 5.1 registered and 2.9 active bidders per property, on average.
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said the first auction month in spring was done and all the metrics were pointing in the right direction.
“We’re seeing strong momentum throughout the entire Sydney real estate market with more agents reporting a higher number of open home attendees and registered bidders,” Mr Pattaro said.
“Demand still outweighs supply, suggesting it remains a seller’s market.
“Buyers haven’t noticed a dip in prices across Sydney and are going all-in once they see a property they desire. Auction is certainly the way to go to ensure premium prices.
“Confidence and positivity are fueling the market and we’re expecting this trend to continue throughout the remainder of 2020.”
Ray White Victoria and Tasmania Chief Auctioneer Matthew Condon said it was great to see confidence was still in the market after the weekend’s auction results.
“The confidence in Melbourne’s real estate market remains strong despite the low volume of auctions this week. The lack of supply on the market is creating a very high demand for quality property,” Mr Condon said.
“Buyers remain out in force and are prepared to bid in excess of owners’ expectations to secure one of the low numbers of listings available, and today’s results are evidence that there’s plenty of pent-up demand coming from buyers who need to transact now.”
“Despite the real estate deep freeze in Melbourne, Ray White Victoria still managed to post some great auction results today. “
Ray White QLD Chief Auctioneer Mitch Peereboom said it had been another great week of results for the Sunshine State.
“We’ve had great volume with our auctions this week which has translated through to some great clearance rates as well,” Mr Peereboom said.
“If you look at the average number of registered bidders, we can see so much activity from buyers that are in a position to bid.
“That’s translating into some massive sale prices which we’re seeing as a direct result of creating this competition.
“We really are recommending to anyone right now to come to the market with confidence, we’re seeing fewer listings than we usually would this time of year, but certainly no shortage of buyers.”
Ray White SA Chief Auctioneer John Morris said the first month of spring had produced some outstanding results across the state.
“Looking back over the month we held around 28 per cent of all auctions across the state, with this week being a dominant one for Ray White, with 46 per cent market share,” Mr Morris said.
“We continue to see some of the highest registered bidder numbers we’ve ever had, with a number of auctions today attracting buyers in the double figures.
“Looking ahead to October, and it’s going to be an exciting month. Personally, I have more than 50 auctions booked alone, and that’s the most auctions I’ve ever had booked in one month.”