Both auction volumes and the preliminary clearance rate took a minor dip this week, with 2845 homes taken to auction across the combined capitals, resulting in a success rate of 78.2 per cent.
CoreLogic noted this week’s volume compares to 2905 auctions the previous week and 612 auctions this time last year.
Of the 2377 results collected so far for this week, over three quarters (78.2 per cent) of auctions proved successful.
In comparison, the previous week recorded a higher preliminary clearance rate of 79 per cent, which revised down to 77.0 per cent at final figures.
“The final clearance rate has held at or above 77 per cent for all but one of the last 15 weeks, so it will be interesting to see how the clearance rate holds up as the remaining results are collected over the next few days,” CoreLogic stated.
In Melbourne, 1286 homes were taken to auction this week, compared to 1345 over the previous week and 168 this time last year.
Preliminary figures show 77.6 per cent of the 1111 results collected so far were successful. This is in line with the previous week, when a preliminary clearance rate of 77.6 per cent was also recorded, revising down to 75.4 per cent at final figures.
There were 1111 homes taken to auction across Sydney this week, compared to 1150 last week and 309 this time last year.
There have been 939 auction results collected so far, returning a preliminary auction clearance rate of 80 per cent.
Last week’s preliminary clearance rate was a higher 81.6 per cent, which revised down to 78.9 per cent at final figures.
The smaller capitals
Across the smaller capital cities, Canberra recorded a preliminary auction clearance rate of 86.5 per cent, followed by Adelaide where preliminary results show 79.6 per cent of auctions were successful.
Brisbane recorded a preliminary auction clearance rate of 63.6 per cent, while in Perth, 68.8 per cent of reported auctions were successful.
Domain has reported a preliminary clearance rate of 76 per cent after 2333 properties went to auction across the major markets this week.
So far, results are in for 1762 of those auctions with 1339 properties selling (to the value of $1179.1 million), while 170 properties were withdrawn.
This week’s volume is down marginally on last week when 2406 properties were taken to auction, resulting in a final clearance rate of 74.6 per cent.
Results were provided for 2216 of those auctions, with 1654 properties selling (to the value of $1549.9 million), while 226 properties were withdrawn.
This time last year, COVID lockdowns saw only 383 properties taken to auction, resulting in a final clearance rate of 64.4 per cent.
Results were provided for 357 of those auctions, with 230 properties selling (to the value of $251.2 million), while 30 properties were withdrawn.
Sydney’s preliminary clearance rate has slipped below 80 per cent, with Domain reporting 76.8 per cent of properties were sold at 949 auctions this week.
So far, results are in for 682 of those auctions, with 524 properties selling (to the value of $549.8 million), while 84 properties were withdrawn.
Last week, Sydney’s final clearance rate was a higher 77.2 per cent after 991 properties were taken to auction.
Results were provided for 924 of those auctions, with 713 properties selling (to the value of $810.6 million), while 80 properties were withdrawn.
This time last year, Sydney led the auction market volume-wise, with 235 properties going to auction and a clearance rate of 63.8 per cent, despite COVID lockdowns.
Results were provided for 221 of those auctions, with 141 properties selling (to the value of $173.1 million), while 21 properties were withdrawn.
Melbourne has recorded a preliminary clearance rate of 74 per cent after 1117 properties were taken to auction this week.
So far, results are in for 887 of those auctions, with 656 properties selling (to the value of $512.9 million), while 75 properties were withdrawn.
Last week, Melbourne had a clearance rate of 72.6 per cent after 1163 properties were taken to auction.
Results were provided for 1067 of those auctions, with 775 properties selling (to the value of $626.7 million), while 128 properties were withdrawn.
This time last year, only 100 properties in Melbourne were listed for auction, and the clearance rate was 68.1 per cent.
Results were provided for 91 of those auctions, with 62 properties selling (to the value of $58.8 million), while five properties were withdrawn.
Ray White results
The Ray White Group has also reflected on the contrast between this time last year and now.
They note a year ago, Australia was deep in the pandemic and many were worried about the property market outlook.
“Fast forward a year and while some metrics are beginning to slightly soften as the market goes its annual winter hibernation, we can safely say the property market has surpassed all of last year’s dire predictions,” they stated.
“Ray White’s auction data from last year shows the market today not only recovered but excelled and reached some historic highs.”
On the fourth weekend of May last year, the Ray White clearance rate was 60 per cent while average registered bidders were 4.8 and active bidders were at 2.8.
The Ray White Group conducted 134 auctions this time last year, while 33 per cent did not make it to auction day.
In contrast this weekend, the Ray White Group recorded a 78 per cent clearance rate, 5.2 average registered bidders and 3.3 active bidders across 398 scheduled auctions.
“The auction method has proven itself over the past year as buyers flood the market and Ray White sellers have seen an average 12.54 per cent extra on their sale price when they go all the way to auction day in comparison to the highest offer prior,” the Ray White Group said.
“May has proven similar to the last few months where listing authorities were up on the last two years as sellers rush to capitalise on a hot market.
“There have been 3881 listing authorities to date in May with Ray White while in 2020 the number sat at 3188 and in 2019 it was 3451.
“Buyers are still everywhere and anywhere, mirroring the trend of last year. This month, loan pre-approvals numbers were still well up compared with the last two years by 62 per cent on 2020 and 124 per cent on 2019.”
New South Wales
Ray White New South Wales chief auctioneer Alex Pattaro said buyer demand remains strong, especially within affordable areas.
“Properties that are desirable and in great locations continue to shine,” he said.
“The upper end of the market between $3 million to $5 million, and $5 million-plus remains the strongest it has been, while family homes also remained popular.
“You can see the real cautiousness within the market where buyers really need to see competition to engage in the auction.
“Buyers are suggesting they are seeing more stock within the market and feel at ease if they miss out on auction day.”
Ray White Victoria | Tasmania chief auctioneer Matthew Condon said the beautiful Melbourne weather at the weekend was perfect for auctions, bringing crowds and bidders out in force.
“Preliminary data from the Ray White Group revealed yet another increase in the average number of registered bidders,” he said.
“It is clear that there’s still more demand for property than supply. Competition at auctions started strong today then increased even further once properties were announced on the market and selling.
“Despite recent talk of a cooling market, Ray White Victoria continues to see consistent and exceptional results, week after week, with the demand for quality properties still outstripping supply.
“Market conditions remained conducive towards sellers, achieving a premium price.”
Ray White Queensland chief auctioneer Mitch Peereboom said it had been an incredible week of auction activity with some outstanding results coming from a huge number of registered bidders.
“Our average number of registered bidders continues to remain consistent in 2021 with so many buyers that want to get their hands on property who have got themselves in the position to bid on a cash unconditional basis at auction,” he said.
“We’re seeing sale prices that are just absolutely moving through the roof, which is a result of getting these buyers in competition, taking it to auction rather than doing the deal earlier in the campaign.
“We do see sales that happen off market or early in auction campaigns where the seller decides to take that offer, but overwhelmingly the evidence is when we actually go through the process we take these buyers, we put them in competition with other buyers in a similar position, that’s when we’re going to be able to get the best outcome.”
Ray White South Australia chief auctioneer John Morris said there were great numbers yet again in South Australia for the Ray White Group.
“Market share has grown this year to about 32 per cent of all auctions within South Australia, that’s up from 27 per cent last week,” he said.
“The figures from last week again were very impressive. 91 per cent of all auctions had bidding, there was an 83 per cent clearance rate, we have 6.7 bidders per auction and 41 auctions last week.
“This week we had 40 auctions. Seven were during the week, all seven of those have sold with 9.3 bidder registrations per auction and 5.1 of them participating.
“Every auction I’ve had today has had bidding and every auction has sold. The average registered bidders for my auctions so far is about nine, which is absolutely fantastic and everything’s selling at or above reserve.”