Auction volumes and the clearance rate continued to climb this week, with the number of auctions increasing 35.2 per cent while enjoying the highest success rate since late November last year.
CoreLogic has reported 2405 properties went to auction this week across the combined capitals, resulting in a preliminary clearance rate of 75.7 per cent.
They note this volume is continuing a trend where the 2022 auction market has been characterised by “above-average auction activity and an upward trend in clearance rates”.
Volumes are also 60.8 per cent higher than the same time last year when 1496 properties went to auction.
Of the 1962 results collected so far, over three-quarters recorded a successful result.
This is higher than last week’s preliminary clearance rate of 74.2 per cent, which revised down to 72.5 per cent at final figures.
“Despite the upwards trend, this week’s clearance rate is still below those recorded this time last year, when 77.1 per cent of auctions held were successful,” CoreLogic said.
Melbourne had the busiest auction market this week with the number of auctions held topping 1000 for the first time this year.
With 1033 auctions held across the city, auction activity was up 77.5 per cent compared to the previous week when 585 properties were taken to auction and up 62.7 per cent compared to this time last year when 635 auctions took place.
With 895 results collected so far, 70.3 per cent have been successful.
“This week’s preliminary clearance rate is down from last week’s preliminary rate of 74.6 per cent, which was virtually unchanged (74.7 per cent) at final figures, and down compared to the 70.6 per cent of auctions that were successful this time last year,” CoreLogic said.
Sydney was host to 892 auctions this week, up from 600 the week prior and up 42.7 per cent compared to this time last year when 625 auctions took place.
Despite the increase in volumes, Sydney recorded its highest preliminary clearance rate since late October, with 79.6 per cent of the 739 results collected so far returning a successful result.
Compared to last week’s final clearance rate of 72.7 per cent, which revised down from a preliminary rate of 76.8 per cent, this week’s results are up, but lower compared to the result recorded this time last year (83.9 per cent).
“The recent trend in clearance rates is a stark turnaround from the December results, where Sydney’s auction clearance rate was tracking around the low 60 per cent range,” CoreLogic said.
The smaller capitals
Across the smaller capitals, auction activity took a bit of a breather following a solid ramp up earlier in the year, with auction activity down 19.6 per cent compared to the week prior.
Despite this, the number of auctions held across the smaller capitals is still more than double those seen this time last year.
Canberra recorded the highest preliminary clearance rate for the third consecutive week, with 81.9 per cent of the 117 auctions held recording a successful result.
This was followed by Brisbane (80.7 per cent), Adelaide (80.4 per cent), and Perth (73.3 per cent).
Tasmania hosted four auctions this week, one of which has recorded a successful result.
Domain has reported a national preliminary clearance rate of 74.4 per cent after tracking 1977 auctions across the major capitals.
So far, results are in for 1367 of those auctions, with 1017 properties selling (to the value of $984.1 million), while 140 properties were withdrawn.
Last week, the clearance rate was 77 per cent after 1367 properties went to auction.
Results were provided for 1088 auctions, with 838 properties selling (to the value of $726.9 million) while 110 properties were withdrawn.
This time last year, the final clearance rate was 77 per cent after 1354 properties were taken to auction.
Results were provided for 1167 of those auctions, with 899 properties selling (to the value of $1167.6 million), while 126 properties were withdrawn.
Sydney has returned a preliminary clearance rate of 77.4 per cent after 784 properties were taken to auction.
So far, results are in for 545 of those auctions, with 422 properties selling (to the value of $479.9 million), while 76 properties were withdrawn.
Last week, Sydney’s final clearance rate was 78.7 per cent after 564 properties were taken to auction.
Results were provided for 447 of those auctions, with 352 properties selling (to the value of $381.2 million), while 54 properties were withdrawn.
This time last year, Sydney’s clearance rate was 83.4 per cent after 550 properties were taken to auction.
Results were provided for 525 of those auctions, with 438 properties selling (to the value of $712.4 million), while 29 properties were withdrawn.
Melbourne’s preliminary clearance rate is sitting at 69.6 per cent after 888 properties were taken to auction.
So far, results are in for 642 of those auctions, with 447 properties selling (to the value of $383.9 million) while 58 properties have been withdrawn.
Last week, Melbourne’s final clearance rate was 72.8 per cent after 493 properties were taken to auction.
Results were provided for 400 of those auctions, with 291 properties selling (to the value of $210.7 million), while 37 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 72 per cent after 671 properties were taken to auction.
Results were provided for 507 of those auctions, with 365 properties selling (to the value of $375.3 million), while 91 properties were withdrawn.
Ray White results
Auction volumes might be higher than this time last year but the Ray White Group has noted the market is still firmly tipped in the favour of sellers for now.
The group’s data indicated there were 65 per cent more auctions this week compared to last year, with buyers willing to spend 13 per cent more at auction than their highest offer prior.
“To put that in context, it represents $130,000 more on top of $1 million – roughly the current national median house price,” the Ray White Group noted.
On Saturday, the Ray White Group recorded a 75 per cent clearance rate, while average registered bidders nationally came in at 5.3 and active bidders sat at 3.1.
New South Wales
Ray White News South Wales chief auctioneer Alex Pattaro said competition remained red hot for premium properties.
“In most of Sydney we continue to see strong bidding activity and auction attendance across all of our auctions,” Mr Pattaro said.
“We are seeing many buyers move to further suburbs outside of Sydney as prices are becoming challenging for many buyers.
“Buyers remain cautious, though if the property and position is right, the buyers are happy to compete.
“Sellers who come to market can take full advantage of the current market conditions knowing they are still obtaining the market’s best prices.”
Ray White Victoria chief auctioneer Matthew Condon said crowds were out in force on a beautiful Melbourne day, creating a great auction atmosphere.
“This week, Ray White Victoria had a healthy 189 auctions scheduled. As more properties come to market, buyers are becoming very selective around the properties they choose to actively bid on and buy,” Mr Condon said.
“This is noticeable at auctions with slightly less active bidders, but buyers are bidding very quickly and aggressively to secure their desired property.
“Overall buyer confidence in Melbourne’s real estate market continues to remain consistent and high.”
Ray White Queensland chief auctioneer Gavin Croft said buyers were out in force today both online and on-site.
“I know it’s been the theme and it’s been the theme for some time, but the on-site auctions today have produced some really strong numbers, not only of attendees but registered bidders,” Mr Croft said.
“They’ve been jam packed with energy but the one thing that’s been really evident is that there has been an increase in online auction attendees, which could be a result of COVID-19 and Omicron.”
Ray White South Australia chief auctioneer John Morris said South Australians are eagerly turning to auctions as their preferred method of sale.
“Valentine’s Day is on Monday and I think the great state of South Australia is having a bit of a love affair with the auction process at the moment,” Mr Morris said.
“Auction numbers in South Australia are the highest they’ve ever been at almost 50 per cent of all listings and we are leading the charge when it comes to auctions with our clearance numbers at the highest around the country.”