The preliminary auction clearance rate has reduced a little this week, coming in at 73.6 per cent, after 1791 homes were scheduled for auction across the capitals.
The volume is a slight increase on the week prior when 1728 properties were taken to auction, and marks the highest number of auctions since the week ending April 5.
CoreLogic notes of the 1442 results collected so far 73.6 per cent have reported a successful result, which is a marginal reduction on last week’s higher preliminary figure of 75.1 per cent which later revised down to 70.6 per cent at final figures.
One year ago, a much higher 2612 homes were auctioned, when a lower 68.5 per cent cleared.
In Melbourne, volumes increased over the week with 632 properties scheduled to go under the hammer. Of the results collected so far, a preliminary clearance rate of 77.1 per cent was recorded.
This was higher than both last week and last year’s clearance rate, however volumes are only half of that seen last year.
Last week, 604 Melbourne homes were auctioned, recording a final auction clearance rate of 69.7 per cent, while last year a 70.1 per cent clearance rate was achieved across 1221 auctions.
There were 807 Sydney homes taken to auction over the week, with preliminary figures showing 76.2 per cent sold. This was lower than last week’s preliminary figure of 76.6 per cent when volumes were a higher 840.
Sydney’s final clearance rate came in at 71.3 per cent last week, so CoreLogic notes this week it will likely be similar.
One year ago, 940 Sydney homes were auctioned returning a final clearance rate of 76 per cent.
The smaller capitals
Across the smaller cities, Canberra was the standout performer for another week with over 80 per cent of auctions successful.
Adelaide’s clearance rate took a hit as the city entered into lockdown during the week, reducing from an 80.3 per cent final clearance rate last week to a 41.2 per cent preliminary success rate this week with the remaining 59 per cent of auctions reportedly withdrawn.
Domain reported a preliminary clearance rate similar to CoreLogic, with 73.4 per cent of stock successfully cleared at the weekend.
This week, they reported 1470 properties were slated for auction. So far, results are in for 1085 of those auctions, with 796 properties successfully selling (to the value of $641.5 million), while 175 properties were withdrawn.
Last week the volume and clearance rate were marginally lower when 1417 properties were taken to auction, and the final clearance rate came in at 71.6 per cent.
Results on 1245 of those auctions were provided, with 891 properties successfully selling (to the value of $732 million), while 145 properties were withdrawn.
In the same week in 2019, the volume was higher, but the clearance rate came in much lower.
Last year, 2088 properties were listed for auction, and the clearance rate was 66.4 per cent. Results were provided for 1912 of those auctions, with 1270 properties successfully selling (to the value of $1509.1 million), while 136 properties were withdrawn.
Sydney’s preliminary clearance rate came in at 75.1 per cent after 728 properties were scheduled for auction this weekend. So far, results are in for 546 of those auctions, with 410 properties successfully selling (to the value of $363.3 million), while 86 were withdrawn.
Sydney’s volume is slightly lower than last week when 760 properties were taken to auction, resulting in a final clearance rate of 72.5 per cent. Results were provided on 690 of those auctions, with 500 properties successfully selling (to the value of $457.8 million), while 66 properties were withdrawn.
This time last year, 771 properties were taken to auction, and the clearance rate was 73.5 per cent. Results were provided on 713 of those properties, with 524 successfully selling (to the value of $754 million), while 66 were withdrawn.
Melbourne’s preliminary clearance rate this week was only slightly behind Sydney’s, coming in at 73.5 per cent on the back of 530 properties listed for auction. So far, results are in for 392 of those auctions, with 288 properties successfully selling (to the value of $224.8 million), while 61 were withdrawn.
This week’s volume is higher than the week prior when 494 properties were listed for auction, and the final clearance rate settled at 68.2 per cent. Results were provided on 434 of those auctions, with 296 properties successfully selling (to the value of $202.5 million), while 51 were withdrawn.
This time last year, Melbourne’s volume was twice that of 2020. In the same week in 2019, 1071 properties were taken to auction, with the clearance rate sitting at 64.6 per cent. Results were provided on 964 of those auctions, with 623 properties successfully selling (to the value of $655 million), while 52 were withdrawn.
Ray White results
Ray White says buyers were out in force across the country at the weekend in what remains a seller’s market as bidders battle it out to secure the ultimate early Christmas present.
The Ray White Group booked a healthy preliminary clearance rate of 77.1 per cent.
New South Wales
Sydney was the star of the show, with a strong preliminary clearance rate of 78.8 per cent. Ray White also saw 5.6 registered and 3.4 active bidders per property, on average.
Ray White New South Wales Chief Auctioneer Alex Pattaro said Christmas was coming early for sellers across Sydney with another impressive week of auctions across the city.
“Auction activity is up week-on-week. We’re seeing approximately six buyers registering to bid per auction on average across our Sydney auctions,” Mr Pattaro said.
“Whether it’s to buy, sell, or both – we see now as the real sweet spot to transact. Interest rates are at record lows and buyer activity is at record highs.
“With more properties coming to market between now and the first quarter of the new year, we see no better time than to sell now.”
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said confidence in Victoria’s real estate market continued to strengthen towards the end of the year.
“Today has also seen an increase in active bidders, as well as strong competition and bidding, even once a property was announced on the market,” Mr Condon said on Saturday.
“On-site auctions continue to utilise online technology to allow more bidders and crowds to tune into the event, with some agents choosing to run their auctions 100 per cent online, given they are expecting over 10 bidders.
“Further government announcements are scheduled for tomorrow around easing of restrictions so we are expecting more positive news for real estate in Victoria.”
Ray White Queensland Chief Auctioneer Mitch Peereboom said the Sunshine State had seen some outstanding results with strong competition matched by strong sale prices.
“That’s closed out what’s been a fantastic week of auctions across the group, across a variety of market segments, with prices ranging from $750,000 to a multi-million-dollar apartment,” Mr Peereboom said.
“We’re seeing activity across all those markets which is coming from buyer confidence and also, as we head towards Christmas, the speed of sale means stock is a little bit tighter, so buyers know they have to compete.
“If you’re looking at coming to the market place then there’s still time to come on before the end of 2020 for auction campaigns and we’re certainly confident to recommend to our clients to do that with the activity that we’re seeing.”
Ray White South Australia Chief Auctioneer John Morris said the short lockdown highlighted how well the Ray White network could pivot and adapt.
“Our network mobilised, our agents didn’t panic, and it was business as usual while we set up our home offices – or in my case – my home online auction studio,” Mr Morris said.
“Coming off a great week last week where we had a 75 per cent clearance, every single auction had bidding, and we had a very strong 8.3 registered bidders per auction on average.
“We found ourselves more than ready this time thanks to the support, the leadership, and the example set specifically by Ray White Victoria and Ray White New Zealand during their lockdowns.”