Auction volumes inched higher this week as spring selling season hits its stride, with CoreLogic predicting next week could see the busiest auction week since June this year.
In total, 1920 properties went to auction across the combined capitals this week, resulting in preliminary clearance rate of 61.7 per cent.
CoreLogic reported this week’s volume is 5.3 per cent higher than last week when 1823 properties went to auction, and considerably higher than last year, when 1453 auctions occurred.
Meanwhile, this week’s preliminary clearance rate is slightly lower than both last week and last year. It’s currently sitting at 61.7 per cent, compared to 62.3 per cent last week.
Last week’s success rate slipped to 59.4 per cent at final figures, while this time last year 73.7 per cent of auctions were successful.
In Melbourne, auction volumes increased with 850 properties going under the hammer to record a preliminary clearance rate of 63.2 per cent.
This volume was a 9.4 per cent increase on last week when 777 auctions occurred and much higher than last year when the city was enduring its sixth COVID-19 lockdown.
This week’s higher volume affected the preliminary clearance rate, which was down 1.5 per cent on last week when 64.7 per cent of auctions were initially successful.
This figure later revised to 62.7 per cent at final figures.
CoreLogic said last week’s final clearance rate was the highest clearance rate the city has seen since the week ending 1 May.
This time last year, Melbourne’s clearance rate was 55 per cent.
There were 702 auctions in Sydney this week, up 1.9 per cent on last week when 689 auctions occurred and 6.2 per cent higher than this time last year when 661 auctions were held across the city.
Of the results collected so far, 60.6 per cent were successful. This was similar to last week’s preliminary clearance rate of 60 per cent, which revised down to 55.8 per cent at final figures.
This time last year, 82.8 per cent of homes taken to auction across the city were successful.
CoreLogic again flagged the withdrawal rate as a metric to watch, with rates remaining high across the city.
Almost a quarter (23.5 per cent) of the 571 results collected so far have been reported as withdrawn, compared to 7.8 per cent in Melbourne.
The smaller capitals
Across the smaller capital cities, Brisbane was the busiest auction market this week with 126 homes taken to auction across the city, followed closely by Adelaide where 125 auctions were held.
There were 101 auctions held in Canberra this week, 15 in Perth, and just one in Tasmania.
Adelaide recorded the strongest preliminary clearance rate this week (77.8 per cent), followed by Canberra (61.9 per cent) and Brisbane (42.4 per cent).
Domain has reported a preliminary clearance rate of 60.9 per cent after tracking 1611 auctions across the major capitals.
So far results are in for 1142 of those auctions, with 696 properties selling (to the value of $570.8 million), while 191 properties have been withdrawn.
Last week, the final clearance rate settled at 58.8 per cent after 1569 auctions took place.
Results were provided for 1334 of those auctions, with 785 properties selling (to the value of $679.8 million), while 178 properties were withdrawn.
This time last year, the clearance rate was 76.3 per cent after 940 auctions were scheduled.
Results were provided for 848 of those auctions, with 647 properties selling (to the value of $1031.2 million), while 96 properties were withdrawn.
In Sydney, 603 auctions were scheduled this week, according to Domain, resulting in a preliminary clearance rate of 61.9 per cent.
So far, results are in for just 383 of those auctions, with 237 properties selling (to the value of $247.8 million), while 105 properties were withdrawn.
Last week, the final clearance rate for the harbour city settled at 54.7 per cent after 654 auctions took place.
Results were provided for 530 of those auctions, with 290 properties selling (to the value of $290.2 million), while 112 properties were withdrawn.
Domain’s data indicates the clearance rate and value of properties sold are lower than this time last year, while the withdrawal rate is higher.
In the same week in 2021, 486 auctions took place, resulting in a final clearance rate of 79 per cent.
Results were provided for 457 of those auctions, with 361 properties selling (to the value of $735.1 million), while 45 properties were withdrawn.
Melbourne’s preliminary clearance rate is sitting at 60.7 per cent after volume inched higher to see 758 properties taken to auction.
Results have been provided for 596 of those auctions, with 362 properties selling (to the value of $248.1 million, while 65 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 60.1 per cent after 684 properties went to auction.
Results were provided for 612 of those auctions, with 368 properties selling (to the value of $301.8 million), while 57 properties were withdrawn.
This time last year, Melbourne’s volume was lower due to ongoing lockdowns, but its clearance rate was higher.
In the same week last year, 241 properties went to auction, resulting in a final clearance rate of 76.9 per cent.
Results were provided for 186 of those auctions, with 143 properties selling (to the value of $160.9 million), while 33 properties were withdrawn.
Ray White results
The market could be stabilising, according to the Ray White Group, who noted positive signs were beginning to emerge as their auctions enjoyed a clearance rate of 60 per cent.
Nationally, the group hosted 557 auctions, which was a 16 per cent on last year when lockdowns impacted activity.
On Saturday alone, the group hosted 341 auctions, clearing 60 per cent of them on a preliminary basis, with 3.4 average registered bidders.
“In fact there was active bidding on 82 per cent of all auctions across Ray White today, which is one of the best days for active buyer activity since the start of the year,” they reflected
The highest number of registered bidders across Australia was 20 bidders who wanted to buy 53 Nineteenth Ave, Hoxton Park in Sydney.
The property was sold by Ray White Carnes Hill agent Shafeel Haq for $938,000.
Ray White New South Wales Chief Auctioneer Alex Pattaro said there were plenty of buyers looking at homes across all of Sydney on Saturday.
“While people are cautious of overpaying there remains more energy within the market now than what there was a few months ago,” Mr Pattaro said.
“The auction process and creating competition remains the key to ensuring that sellers obtain the best results. The best price appears when competition presents itself.”
Ray White Victoria Chief Auctioneer Matt Condon said this week auction volume was slightly down in comparison to previous weeks with 155 auctions scheduled for Ray White Victoria across the state.
“Crowd sizes and inspection numbers were noticeably larger today.
“The spring selling season is in full swing however, it is evident that there is currently a shortage of properties available on the market.
“With this lower level of supply we have definitely noticed more competition at auction between buyers,” Mr Condon said.
“This is evident when looking at preliminary data from the Ray White Group, with a healthy average of 3.6 confirmed bidders at each auction. It is also great to see a number of properties sell above reserve price.
“Despite all the noise surrounding the real estate landscape and the recent interest rate rise, it is important to note that if a buyer sees value in a property, they will bid and buy with confidence.”
Ray White South Australia Chief Auctioneer John Morris said it’s show time in Adelaide.
“While the rain may have dampened the spirits of the Adelaide Show over the past week or so, the sun has certainly come out this Saturday for a bumper week of auctions.
“We entered the week with a 78 per cent clearance rate. It’s absolutely fantastic to see 6.5 average registered bidders per auction and 33 per cent of all auctions throughout the state are flying the yellow flag,” Mr Morris said.
“These unbelievable numbers continue to abound in and around the state and we hope they stay on track for our financial year again.
“We are proving again and again that South Australia is definitely now an auction state and we may even be the auction capital of Australia if we continue going like we are right now.”
Ray White Queensland Chief Auctioneer Gavin Croft said it had been a quieter start than normal start to the spring selling season for Ray White in Queensland.
“But then since COVID there was no rhyme or reason or right or wrong. Potentially spring might have started a little bit earlier in August given the volumes that we’ve seen across Ray White Queensland with the quality and the volume of auctions,” Mr Croft said.
“Today we had 26 auctions set to go under the hammer across Brisbane and we cleared 53 per cent of them.
“There’s always apprehension after an interest rate rise and so no surprise, there was a mix of reactions.
“Some buyers showed real caution and a real measure in their approach but others still remained quite aggressive,” he said.
“I’ve seen an average of four registered bidders per auction right across the day.
“So that is particularly encouraging, and particularly so when the active rates of those registered bidders was particularly high at three, so 75 per cent of registered bidders were also active.
“Sellers could time it accordingly early this spring, as we don’t have the volume of properties hitting the market like we certainly thought and that could be a real opportunity for potential sellers.”