This week’s preliminary clearance rate has edged higher and volumes remain on par with previous weeks, despite the fact more than 250 of the anticipated 2077 auctions for this weekend were rescheduled to a later date.
CoreLogic notes this week 1806 properties went to auction across the combined capital cities, resulting in a preliminary success rate of 79.2 per cent.
This week’s preliminary clearance rate is higher than last week’s 74.8 per cent preliminary clearance rate, which later revised down to 73 per cent by the time final results were tallied on Wednesday.
Last week a total of 1728 auctions held, while one year ago, a lower 1154 auctions took place resulting in a final clearance rate of 58.7 per cent.
In Melbourne, 679 homes were taken to auction this week, recording a preliminary auction clearance rate of 77.1 per cent.
CoreLogic explained this was considerably higher than the 71.9 per cent preliminary figure last week when the city was in lockdown.
The final clearance rate came in at 70.8 per cent last week across 772 auctions. One year ago, 357 auctions took place and a final auction clearance rate of 55.1 per cent was recorded.
Sydney has remained rather resilient despite the prolonged lockdown currently faced, CoreLogic said
The city has seen over 500 properties taken to auction each week. This week 685 homes proceeded to auction, returning a preliminary auction clearance rate of 80.8 per cent.
This week’s results are an improvement on the 74.8 per cent preliminary clearance rate recorded last week. The final results last week came in at 72.8 per cent across 585 auctions.
“Of the results collected so far this week, 14 per cent were withdrawn, which is lower than last week’s final of 21 per cent,” CoreLogic said.
“Of the sold results, 64.5 per cent were sold prior the auction event this week, which is higher than the 58.1 per cent of sold priors last week.”
The smaller capitals
Canberra was the best performing of the smaller auction markets this week, with a preliminary auction clearance rate of 92.1 per cent.
Following this was Adelaide with a preliminary clearance rate of 82.5 per cent.
Domain is reporting a national clearance rate of 76.8 per cent on the back of higher auction volumes.
This week, their data indicates 2203 properties were taken to auction, with results so far in for 1102 of those auctions.
At this point, 846 properties have sold (to the value of $785.9 million) while 179 properties were withdrawn.
Last week, the final clearance rate settled at 69.8 per cent after 1955 properties were taken to auction.
Results were provided for 1312 of those auctions with 916 properties selling (to the value of $728.9 million), while 334 properties were withdrawn.
This time last year, the clearance rate was 59.2 per cent after 885 properties were taken to auction. Results were provided for 843 of those auctions, with 499 properties selling (to the value of $552.8 million), while 161 properties were withdrawn.
Sydney returned a preliminary clearance rate of 74.8 per cent after 623 properties were taken to auction.
So far, results are in for 472 of those auctions, with 353 properties selling (to the value of $388.2 million), while 96 properties were withdrawn.
Last week, Sydney’s final clearance rate was 72.2 per cent after 567 properties were taken to auction.
Results were provided for 468 of those auctions, with 338 properties selling (to the value of $336.5 million), while 105 properties were withdrawn.
This time last year, Sydney’s volume and clearance rate were both lower. In the same week last year, only 493 properties were taken to auction, and the clearance rate was 61.8 per cent.
Results were provided for 458 of those auctions, with 283 properties selling (to the value of $372.9 million), while 78 properties were withdrawn.
Melbourne’s preliminary clearance rate rose to 76.5 per cent after a boost in volume saw 1264 properties taken to auction.
So far, results are in for 430 of those auctions, with 329 properties selling (to the value of $275.9 million), while 65 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 66.6 per cent after 1122 properties were taken to auction.
Results were provided for 646 of those auctions, with 430 properties selling (to the value of $296.3 million), while 192 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 56.1 per cent after 268 properties were taken to auction.
Results were provided for all those auctions, with 151 properties selling (to the value of $122.4 million), while 73 properties were withdrawn.
Ray White results
Ray White is reporting a shortage of stock saw bidders fighting it out at auctions across the country, with the group clearing 91 per cent of their auctions nationally.
They noted sellers who forged ahead with auctions at the weekend netted all-time high prices with intense buyer demand propelling sale prices up 13.4 per cent higher on average, compared to the best offer prior to auction day, according to Ray White.
That’s the highest that metric has been since the Ray White group began collecting its auction data in detail.
Average registered and active bidders were also at all-time highs despite the sharp fall in auctions conducted to less than 180 across Australia for Ray White alone.
With a 20 per cent fall in new listings across the group nationally last week, the sellers who did proceed to auction this weekend were rewarded at a time of elevated demand, the Ray White group said.
New South Wales
Despite the lockdown in Sydney, the network recorded a preliminary clearance rate of 81 per cent and 12 average registered bidders per auction lot on Saturday.
Ray White NSW Chief Auctioneer Alex Pattaro said all auction data suggested now was still an incredible time.
“People will look back on this lockdown and realise demand was still high as buyers remain strong. We know some Sydney sellers remained nervous about coming onto the market but with such a high number of buyers, and a low number of stock, with electrifying bidding, it’s a good time,” he said.
“Many buyers are bidding well above their price feedback given prior to the auction. The market conditions now are actually helping Sydney sellers achieve a premium result, typically well above the reserve auctions.”
Ray White reported it was a record day for auctions in Melbourne on Saturday as the city was released from its fifth lockdown.
Whether onsite or online, Ray White Victoria chief auctioneer Matt Condon said the weekend’s auction results had been exceptional after the state was released from lockdown earlier this week.
“The low volume of auctions and high buyer demand is still creating an environment that is conducive towards sellers achieving a premium price,” Mr Condon said.
“On the ground we saw smaller crowd sizes at auctions, however, buyers were out in force with Ray White Victoria recording a higher than normal average of both registered and active bidders.”
Ray White Victoria saw an average of five registered bidders, with an average of 4.1 active bidders.
Meanwhile, stay at home orders have been placed over parts of Queensland with a snap three day lockdown confirmed on Saturday in a bid to contain the latest outbreak of the Delta strain of covid-19.
Brisbane Ray White Queensland Chief Auctioneer Gavin Croft said the network had increased its auction market share to 35 per cent.
“We sell roughly one in three of all auction properties in Queensland which shows you our scale and our execution on the auction day.”
Ray White South Australia chief auctioneer John Morris said lockdown hadn’t slowed the auction market with 136 auctions scheduled across the state in the past week, with 43.4 per cent registered to Ray White.
“Preliminary data suggests there has been bidding at every single auction today and this week, with every property selling under the hammer,” Mr Morris said.
“Possibly thanks to the huge 14.3 average registered bidders with 5.5 of those participating in the bidding.
“Everyone is adhering to the social distancing protocol but that’s about the only civility there is between the bidders as they battle it out in fierce competition throughout Adelaide today and earlier this week.”