NationalReal Estate Industry News

Auction clearance rate up on the back of increased volume

The national clearance rate is sitting just below 80 per cent after a weekend which saw Canberra, Sydney, Perth and Melbourne all achieve exceptional results.

According to the latest data from CoreLogic auction markets showed a strong result of 78.6 per cent on the back of higher volumes as the number of properties taken to auction tracked well above levels from a year ago.

There were 1555 homes taken to auction across the combined capital cities this week. This compares to 1167 auctions last week, which returned a preliminary clearance rate of 69.4 per cent, before revising down to a final clearance rate of 67.7 per cent.

Over the same week last year, auction volumes were lower with 1450 homes going under the hammer across the combined capital cities, returning a final auction clearance rate of just 51.2 per cent.

This week it was Canberra leading the charge with 48 properties taken to auction and a preliminary clearance rate of 90.3 per cent.

Sydney followed just behind with 578 auctions, returning a preliminary clearance rate of 80.3 per cent. In comparison, there were 447 auctions held over the previous week and the final auction clearance rate was 77.6 per cent. One year ago, 523 auctions were held, and the clearance rate came in at 54.6 per cent.

Over in Perth, the market continues to gain momentum. Of the 19 properties taken to auction, 80 per cent were cleared.

In Melbourne, a preliminary auction clearance rate of 79.2 per cent was recorded across 717 auctions this week. That’s a major jump in volume and clearance on last week when 419 auctions returned a final clearance rate of 68.5 per cent. Meanwhile, one year ago, the clearance rate was just 52.5 per cent across 657 auctions.

Across the smaller auction markets, Brisbane had the highest volume of auctions with 104 homes going under the hammer, returning a preliminary clearance rate of 61.5 per cent.

Ray White reports energetic increase

Ray White also reported increased auction activity and renewed energy off the back of softening finance conditions and lack of supply.

They currently have 2193 auctions booked in this month – up a whopping 28.8 per cent compared to last February.

In the past week alone, Ray White members scheduled 446 properties for auction with 225 of going under the hammer across Australia and New Zealand on Saturday.

New South Wales

Across New South Wales, Ray White had 72 properties listed for auction, with their preliminary clearance rate for Sydney sitting at 87 per cent.

Ray White NSW Chief Auctioneer Alex Pattaro said it had been another exciting week with great attendance volumes reflecting a red hot market.

“First home buyers appear to be the flavour of the month,” Mr Pattaro said.

“Agents and buyers in the market have indicated finance is easy to obtain, increasing the pool of active and qualified buyers.

“With the oversupply of buyers, vendors should be considering getting their property on the market and take full advantage of the buyers within the market. Active and financially approved buyers are at a high and are at similar levels of 2017.”

Mr Pattaro said if more stock was to reach the market, there was little doubt higher clearance rates and inevitably higher prices would continue.

Victoria

In Melbourne, Ray White Victoria Chief Auctioneer Matthew Condon said it had been another exceptional week of auctions for members culminating in outstanding state and capital city preliminary clearance rates of 88 per cent.

“Today has seen an increase in auction crowds which is actually a surprise given the rain and weather,” Mr Condon said on Saturday.

“Based on preliminary data from the Ray White Group, there was a very healthy amount of average active bidders per auction.

“This was definitely noticeable on the ground with buyers actively bidding at each auction and bidding with a clear strategy in mind. The first home buyer and investor markets were very popular today and we are continuing to see momentum and competition in bidding once a property has been announced on the market and selling.”

Queensland

Up north, Ray White Queensland Chief Auctioneer Mitchell Peereboom said the strong clearance rate of 2020 continued across the sunshine state.

“Every auction I called today had registered bidders,” Mr Peereboom said.

“We’re seeing competition between buyers quite fierce as we’re seeing less stock on the market which is driving our buyers to be willing to compete. It certainly has translated through to some great sale prices as well. The standout for me today has been the $700,000 to $1 million bracket.”

Queensland’s top auction result of the day was the sale of 31 Hazlewood St, Highgate Hill for $1.9 million.

South Australia

Ray White SA Chief Auctioneer John Morris said the Adelaide auction market was in full swing.

“Everyone I’ve spoken to so far has had successful sales throughout the day, strong bidding, plenty of registered bidders and looking like it’s just going to get stronger and stronger throughout,” Mr Morris said.

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