Auction volumes are likely to continue at a lower rate for the foreseeable future, according to CoreLogic, with just 590 properties scheduled for auction across the capitals this weekend resulting in a clearance rate of 59.6 per cent.
Volumes were up slightly on the week prior when 413 homes were scheduled for auction and a final clearance rate of 41.1 per cent was achieved, with the lower volumes likely due to Anzac Day commemorations.
In comparison one year ago, there were 1,479 homes taken to auction with a 52.5 per cent clearance rate.
“It’s likely the number of scheduled auctions will remain substantially lower than normal, at least until social distancing policies are lifted and on-site auctions can resume,” CoreLogic stated.
“With fewer scheduled auctions, we are likely to see the withdrawn rate start to normalise which is likely to have a positive flow-on affect to the clearance rate.
“It has been dragged lower over the past month due to a surge in auction withdrawals which are counted as unsold in the clearance rate statistics.
“As we’ve seen over the last few weeks, the number of auction results collected at a preliminary stage are lower than usual as we seek to confirm the status of scheduled auctions so results should be interpreted with caution.”
Melbourne
In Melbourne, 210 homes were scheduled to go under the hammer this week. CoreLogic said so far 108 auctions have been reported, returning a preliminary success rate of 63.0 per cent.
“Once remaining results are collected we expect this to revise lower. The previous week saw a final clearance rate of 27.9 per cent across 144 auctions,” they said.
Sydney
There were 269 auctions scheduled in Sydney this week, returning a preliminary clearance rate of 62.7 per cent. In comparison, last week saw 192 homes taken to auction with a success rate of 50.9 per cent.
Across the smaller cities, Canberra continued to outperform the remaining capital cities with a 72.2 per cent preliminary success rate.
Domain results
Domain also reported fewer auctions this week than the same time last year, with 426 properties listed nationally, 184 reported and 133 sold to the collective value of $91.2 million. Meanwhile 135 properties were withdrawn, resulting in a preliminary clearance rate of 41.1 per cent.
In comparison, this time last year 1181 properties were listed for auction nationally, 980 results were reported, 581 properties sold and just 181 were withdrawn for a clearance rate of 53.3 per cent and sales valued at $531.2 million.
Domain figures indicated the bulk of this week’s auction action occurred in Sydney, which saw 221 properties listed and results for 112 properties reported, including 86 sales and 61 withdrawals for a clearance rate of 49.7 per cent.
In Melbourne, 157 properties were listed, 53 results were reported, 39 properties sold and 64 were withdrawn, resulting in a clearance rate of 33.3. per cent.
Ray White results
Ray White posted positive results for the weekend, noting a surge in average registered bidders on Saturday saw the Ray White Group clear more than 51 per cent of its national auctions.
They further indicated average registered bidders rose to 4.6 per auction, up from 3.0 a month ago and 3.6 last Saturday.
Ray White’s Sydney members cleared 75 per cent of its auction stock, while Melbourne cleared 44 per cent, according to the group’s in-house data collection.
Dan White, Managing Director of the Ray White Group, said these results were up on last week, with many outstanding auctions on Saturday.
“Volumes are down on last year but we hope that these results will give more prospective vendors the confidence to come to market to take advantage of the low number of properties on offer and large number of genuine buyers,” Mr White said.
New South Wales
Ray White Erskineville was the standout achiever in NSW, selling $12.518 million worth of property. Over a marathon day, the team cleared 88 per cent of its auctions held, selling eight from nine lots.
Director Ercan Ersan said there were 70 bidders combined registered to bid across the nine lots, which shows the inner west property market shows no sign of slowing down.
Ray White NSW Chief Auctioneer Alex Pattaro said the competition within the Sydney market continues to hold strong with Ray White New South Wales’ average registered bidders at four with active bidders being at approximately 2.5.
“Today, Ray White Petersham sold 48 Acton St in Hurlstone Park for $1.51 million, over $120,000 above initial expectations,” Mr Pattaro said.
“There were seven registered bidders, three being active and the under bidder was only $10,000 away.
“This is a clear indication that there is strong and active competition within the market for good properties in desirable locations. This is a great indication into what might be coming in the months ahead.”
Victoria
Ray White Victoria/Tasmania Chief Auctioneer Matthew Condon said overall, Ray White Victoria is expecting one of its strongest auction day clearance rates in the past four weeks.
“With the cold weather and rain across Victoria today buyers and sellers would have certainly appreciated being able to transact real estate from the safety and comfort of their own home,” Mr Condon said.
“Based on preliminary data from the Ray White Group, since auctions have 100 per cent gone online week-on-week we are seeing an increase in auction volume as well as an increase in auction day clearance rate.
“This just goes to show the continued confidence in Victoria’s real estate market from both buyers and sellers alike.
“Today has also seen plenty of competition online between bidders with some exceptional prices and results achieved for our clients.”
Queensland
Ray White Queensland Chief Auctioneer Mitch Peereboom noted it had been a fascinating week with confidence building across all markets.
“A number of properties sold this week under the online auction platform, and buyers are excited, not deterred, about bidding online with at least three bidders per property,” Mr Peereboom said.
“There’s been a number of properties selling well over reserve with massive pent-up demand.
“A highlight for the group is the number of auctions that have been booked to be conducted in May and June.
“That number is certainly strong and indicates sellers coming to market and have the confidence to transact over the next month.”
