High auction volumes continued this week, rising 8.2 per cent on the week prior to see 3562 properties go under the hammer.
CoreLogic tips this weekly increase in volumes is likely to continue now lockdown restrictions have eased in Sydney, Melbourne and Canberra, with auction volumes increasing by 79.4 per cent since the first week of October.
“With each week outperforming the last, it’s unlikely that auction volumes have reached their peak,” CoreLogic noted.
“Due to a combination of pent-up supply and seasonal factors, auction volumes are set to rise further through the second half of November.”
However, CoreLogic also reported that high volume was impacting the preliminary clearance rate, which this week continued its downward trajectory for the fifth consecutive week to come in at 75.5 per cent, based on the 2933 results collected so far.
Last week the preliminary clearance rate was 76.1 per cent after 3292 properties were taken down to auction, but revised down to 73 per cent at final figures.
This time last year 70.6 per cent of the 1728 auctions held were successful.
Across Melbourne, 1556 homes went under the hammer this week, up 11.3 per cent from the week prior when 1398 properties were taken to auction.
Despite the increase in volume, Melbourne recorded a rise in its preliminary clearance rate, with 74.1 per cent of the 1324 results collected so far returning a successful result.
Last week saw a preliminary clearance rate of 72 per cent which revised down to 67.7 per cent at final figures.
This time last year 604 homes went to auction, returning a clearance rate of 69.7 per cent.
Sydney had its second busiest week of the year and its busiest week since late March, with 1290 homes taken to auction this week.
Last week, 1239 homes went under the hammer, while this time last year 840 auctions occurred.
The increase in volumes saw Sydney’s preliminary clearance rate continue to fall for the fifth consecutive week, with 75.1 per cent of the 1086 results recorded so far returning a successful result.
Last week, the preliminary clearance rate was 75.9 per cent, and later revised to 74.1 per cent, while a clearance rate of 71.3 per cent was recorded this time last year.
Sydney reported its highest withdrawal rate since mid-August, with 13 per cent of properties withdrawn.
The smaller capitals
With a number of the smaller capitals reporting record volumes this week, clearance rates began to fall.
Recording their highest auction volumes since CoreLogic records commenced in 2008, both Canberra (79.9 per cent) and Adelaide (77.8 per cent) saw their preliminary clearance rate slip below 80 per cent for the first time in nine and 10 weeks respectively.
Brisbane recorded a preliminary clearance rate of 80 per cent, while in Perth 83.3 per cent of the 12 auction results reported so far were successful.
Two of the five auctions held across Tasmania this week reported a successful result.
Domain has reported a national preliminary clearance rate of 74.7 per cent after tracking 2572 auctions across the major markets this weekend.
So far, results are in for 1753 of those auctions, with 1309 properties selling (to the value of $1202.7 million), while 222 properties were withdrawn.
Last week, the clearance rate settled at 73.8 per cent after 2467 auctions took place.
Results were provided for 2003 of those auctions, with 1478 properties selling (to the value of $1332.6 million), while 245 properties were withdrawn.
This time last year, the clearance rate was 70.3 per cent after 1382 properties were taken to auction.
Results were provided for 1302 of those auctions, with 915 properties selling (to the value of $1162.7 million), while 144 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 75.2 per cent after 988 properties were taken to auction this weekend.
So far, results are in for 661 of those auctions, with 497 properties selling (to the value of $556.1 million) while 115 properties were withdrawn.
Last week, Sydney’s final clearance rate was 73.7 per cent after 995 properties were taken to auction.
Results were provided for 847 of those auctions, with 624 properties selling (to the value of $652.2 million), while 115 properties were withdrawn.
This time last year, Sydney’s clearance rate was 72.8 per cent after 747 properties were taken to auction.
Results were provided for 696 of those auctions, with 507 properties selling (to the value of $756.6 million), while 80 properties were withdrawn.
Melbourne has clocked a preliminary clearance rate of 72.8 per cent after 1206 properties were taken to auction this weekend.
Results have so far been provided for 857 of those auctions, with 624 properties selling (to the value of $514.6 million), while 86 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 71.2 per cent after 1098 properties were taken to auction.
Results were provided for 879 of those auctions, with 626 properties selling (to the value of $509.2 million), while 114 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 66.7 per cent after 475 properties were taken to auction.
Results were provided for 448 of those auctions, with 299 properties selling (to the value of $305.9 million), while 53 properties were withdrawn.
Ray White results
The Ray White Group reported buyers turned up in droves this weekend as all major capital cities enjoyed their freedoms and returned back to onsite auctions.
The group booked 830 properties to go to auction this week with its weekly clearance standing at 78 per cent by late Saturday.
On the day, 371 properties went under the hammer, producing a preliminary auction day clearance rate of 74 per cent. This rate was slightly softer than the weekly average but was predicted to rise once all results came in.
“Registered bidder numbers however were up to a solid 6.2 per auction which shows there’s no slowdown in buyer demand,” the Ray White Group noted.
The standout city of the day was Brisbane with a preliminary clearance of 82 per cent and a steady stream of interstate new buyers who are ready to move to the Sunshine State once the border opens.
Once Queensland hits 70 per cent double dose, which could be as early as today, people can enter the state from a hotspot via air and go into 14 days home quarantine.
Ray White New South Wales Chief Auctioneer Alex Pattaro said there was no sign of the Sydney market slowing down, with desirable properties performing particularly well in Western Sydney, after buyers had been priced out of the inner city.
“Clearance rates remain high which suggests that buyer demand is still strong, and typically when properties don’t sell, it is due to sellers expecting more than the market is prepared to pay,” Mr Pattaro said.
Ray White Victoria and Tasmania CEO Stephen Dullens said the rapid recovery across Melbourne continued to roll on.
“In the last week we launched nearly 500 new listings to market across Victoria, which is the highest weekly number on record in the Ray White group. Sellers are seeing the strong results and have confidence in the strength of the market, which also means more choice for buyers,” he said.
“We are expecting an extremely strong period right up to Christmas and into 2022,” Mr Dullens said.
Chief Auctioneer Matt Condon said the average number of active bidders per auction still remains very healthy.
“Due to the weather today, crowds were made up mostly of serious bidders but it didn’t dampen the auction results,” Mr Condon said.
Ray White Queensland Chief Auctioneer Gavin Croft said the theme of the day was strong buyer demand, however the gap between seller expectation and buyer position was starting to widen.
“We are noticing the rising level of seller expectations, which many of the buyers simply cannot meet. We are seeing excellent results though across the state, and properties still selling for a premium due to both local and interstate buyers pushing up demand.”
Ray White South Australia Chief Auctioneer John Morris said the momentum doesn’t seem to be slowing down in the lead up to Christmas.
“There is still time for some lucky buyers to get their foot in the door now, and be moved into their new home for the festive season,” Mr Morris said.
“We are sitting at 6.6 average registered bidders, which is slightly down, however participation remains at a high and the clearance rates remain high,” he said.