Capital city auction volumes increased almost 13 per cent this week, with 2159 properties going under the hammer to record a preliminary clearance rate of 60.1 per cent.
CoreLogic noted this initial success rate was down 3.6 per cent on the week prior, based on the 1709 results collected so far.
Last week, 1917 auctions took place, resulting in a preliminary clearance rate of 63.7 per cent.
This was the highest seen since late May when the cash rate was just 25 basis points above the record low of 0.1 per cent, but later revised to 59 per cent at final figures.
Meanwhile, this time last year both auction volumes and the clearance rate were higher.
“When spring selling conditions were significantly stronger this time last year, 73.2 per cent of the 3539 auctions held across the combined capitals were successful,” CoreLogic stated.
In Sydney, 786 homes went under the hammer this week, making it the city’s busiest auction week since late September.
Compared to the 704 auctions held last week, this week’s auction activity is up 11.6 per cent but is 37.6 per cent below the number of auctions held this time last year (1259).
After recording a 69.7 per cent preliminary clearance rate last week, which was the strongest since mid-April, this week’s initial success rate fell 8.8 percentage points.
“The decline in the clearance rate was partly attributable to a higher portion of withdrawn auctions, with the withdrawal rate rising above 20 per cent for the first time since late September to 24.4 per cent,” CoreLogic noted.
Last week’s preliminary clearance rate of 69.7 per cent revised to a final clearance rate of 63.7 per cent, while this time last year, a final clearance rate of 71.5 per cent was recorded.
Auction activity across Melbourne continued to trend upwards this week, with 920 homes taken to auction.
The previous week saw 797 homes go under the hammer, while this time last year auction activity was significantly stronger.
In the same week last year volumes were 41.2 per cent, with 1564 properties going to auctions, thanks to stronger market conditions and pent-up market demand owing to extended lockdowns, CoreLogic said.
With 787 results collected so far, Melbourne’s preliminary clearance rate of 60.1 per cent remained above 60 per cent for the 16th consecutive week.
Last week, a preliminary clearance rate of 61.9 per cent was recorded and later revised to 58.4 per cent at final numbers, while 71.8 per cent of auctions held this time last year were successful.
The smaller capitals
Across the smaller capitals, Brisbane hosted the busiest auction market this week (up 31.5 per cent), with 171 homes auctioned across the city.
This was followed by Adelaide (149), which saw weekly auction activity fall by 5.1 per cent week-on-week, and Canberra (112), which saw auction numbers hold steady compared to last week.
Adelaide had the most successful week amongst the smaller capitals, with a preliminary clearance rate of 68.6 per cent, up 2.3 percentage points compared to last week’s preliminary rate.
Preliminary rates across Canberra (59.7 per cent) and Brisbane (41.8 per cent) both fell by 1.2 percentage points.
In Perth, three of the 12 results collected so far were successful, while just one of the three auction results collected in Tasmania has returned a successful result.
Domain has recorded a preliminary clearance rate of 59.9 per cent after tracking 1763 auctions across the major capitals this week.
So far, results are in for 1183 of those auctions, with 709 properties selling (to the value of $595.3 million), while 191 properties were withdrawn.
Last week, the final clearance rate settled at 59.8 per cent after 1596 auctions took place.
Results were provided for 1383 of those auctions, with 827 properties selling (to the value of $729.6 million), while 174 properties were withdrawn.
This time last year, the clearance rate was higher at 68.9 per cent on the back of greater volume, with 2492 properties going to auction.
Results were provided for 2344 of those auctions, with 1614 properties selling (to the value of $2364.5 million), while 270 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 59.9 per cent after 669 properties were taken to auction this week.
So far, results are in for 384 of those auctions, with 230 properties selling (to the value of $225.3 million), while 107 properties were withdrawn.
Last week, Sydney’s clearance rate was 63.6 per cent after 636 properties went to auction.
Results were provided for 525 of those auctions, with 334 properties selling (to the value of $357.4 million), while 89 properties were withdrawn.
This time last year, Sydney’s clearance rate was 67 per cent after 962 properties went to auction.
Results were provided for 888 of those auctions, with 595 properties selling (to the value of $1207.7 million), while 121 properties were withdrawn.
Melbourne saw 823 properties go to auction this week, resulting in a preliminary clearance rate of 60 per cent.
So far, results are in for 640 of those auctions, with 384 properties selling (to the value of $302.5 million), while 68 properties were withdrawn.
Last week, 671 properties went to auction, resulting in a final clearance rate of 58.9 per cent.
Results were provided for 603 of those auctions, with 355 properties selling (to the value of $266.6 million), while 60 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 68.7 per cent after 1165 properties went to auction.
Results were provided for 1091 of those auctions, with 749 properties selling (to the value of $892 million), while 124 properties were withdrawn.
Ray White results
The Ray White Group noted competitive bidding across the country kept the clearance rate healthy on one of the last weekends of spring.
The auction group recorded a solid 63 per cent initial success rate on Saturday, which was similar to levels last seen in mid-April.
There was an average of 3.5 registered bidders and 2.4 active bidders attending a Ray White auction somewhere across the country.
“On average, sellers who sold under the hammer today made almost 10 per cent more on top of their sale price than if they had taken a prior offer on their property,” the group reported.
Sydney’s inner west boasted the top Ray White auction sale on Saturday.
Directors of Ray White Surry Hills, Ercan Ersan and Matthew Carvalho, sold 9 Harrow Rd, Stanmore for $4.1 million to a young couple looking for a bigger home for their growing family.
It was an Adelaide auction that had the top number of registered bidders. Ray White Woodville’s Peter Kiritsis attracted 14 bidders to his auction at 12 Royal Cl, Findon.
Ray White New South Wales chief auctioneer Alex Pattaro said it had been another strong weekend of bidding activity in Sydney.
“There should be no fear for sellers coming to market or buyers purchasing real estate as it feels we’ve arrived at a level where buyers and sellers are happy to transact, which is reflected in our bidding numbers and clearance rates,” Mr Pattaro said.
“We’ve had three years of an insane market, it is important that anyone looking to transact in this market understands that what we’re in is a normal market!”
Ray White Victoria and Tasmania chief auctioneer Matthew Condon said this week had seen an increase in auction volume across the state with just over 170 auctions scheduled for Ray White Victoria.
“We are continuing to see an increase in the number of properties launching to market with many sellers choosing to schedule theirs in late December,” Mr Condon said.
“This has provided buyers with more choices, with preliminary data from the Ray White Group revealing a slight drop in the average number of active bidders per auction.
“It was also noticeable on the ground with a number of buyers being very reactive rather than proactive in their bidding strategies.
“Properties that are priced in line with market expectations continue to attract high levels of interest and are ultimately experiencing great auction day results.
“Our clearance rate continues to remain solid and as a group we are expecting a strong finish to the year.”
Ray White Queensland chief auctioneer Gavin Croft said there were still gaps between seller expectations and where buyers saw the market.
“It’s a very typical theme that we’re seeing there,” Mr Croft said.
“But more and more sellers, as evidenced by the volume that I’m certainly seeing, are coming to auction at the moment because they’re grappling and trying to understand exactly where their property sits in the market.”
Ray White South Australia chief auctioneer John Morris said it wasn’t the storm that blew most people away on Saturday, it was bidding at auctions.
“The stories I’m hearing from other auctioneers around the traps are that everything is selling with plenty of registered bidders turning up and plenty of action in and around South Australia,” Mr Morris said.