Auction markets remain strong despite coronavirus concerns, with 2220 properties taken to auction across the capitals this week, returning a preliminary clearance rate of 70.6 per cent.
CoreLogic notes this figure is well above last week’s national volume when 1,494 auctions returned a final clearance rate of 68.6 per cent.
“After the remaining results are collected it is likely that the final auction clearance rate will revise below 70 per cent for the second week in a row,” CoreLogic noted.
“Over the same week last year, 1,875 homes went under the hammer across the combined capital cities, returning a final auction clearance rate of just 51.4 per cent.
“Although clearance rates have edged lower, the final clearance rate across the major auction centres is likely to remain around the high 60 per cent to low 70 per cent range, implying this is still a seller’s market.
“With uncertainty rising and confidence slipping as the coronavirus outbreak becomes more widespread, there is some downside risk that housing activity will reduce which could weigh on auction markets over coming weeks.
“However, based on the early auction results this week, the housing market has proven to be relatively resilient so far.”
Melbourne topped the nation in terms of volume, accounting for over half the properties taken to auction. There, a preliminary auction clearance rate of 70.1 per cent was recorded across 1,173 auctions, while last week’s long weekend saw 418 auctions returning a final clearance rate of 66.1 per cent.
“It is looking likely that Melbourne’s final clearance rate will fall below 70 per cent again this week, after sitting around the mid 70 per cent range for three weeks prior to that. One year ago, the clearance rate was 52.1 per cent across 920 auctions,” CoreLogic said.
In Sydney, there were 749 auctions, returning a preliminary clearance rate of 74.6 per cent.
“In comparison, there were 830 auctions held over the previous week and the final auction clearance rate was 75.2 per cent,” CoreLogic explained.
“One year ago, 638 auctions were held and the clearance rate came in at 54.2 per cent.”
Across the smaller auction markets, auction volumes increased week-on-week across Adelaide, Brisbane, Canberra and Tasmania, while Perth saw fewer homes taken to auction over the week.
Ray White roundup
Ray White also noted the auction market had this weekend defied doom and gloom predictions as bidders turned out in force across the country at Ray White Group’s 317 scheduled auctions, with a preliminary clearance rate of 67.5 per cent.
Ray White Group Managing Director Dan White said Saturday’s activity in the real estate market underscored the community’s faith in the housing market.
“Our results are consistent with the momentum of recent months, particularly February where the Ray White Group achieved personal best auction results for its clients,” Mr White said.
“Today’s activity shows that large numbers of buyers in the market are deeply engaged, in an environment that meets the criteria of safe places, as defined by the health authorities.
“We’re proud of the new steps our agents and auctioneers have introduced to provide a safe, yet welcoming environment for our customers.
“Whether it be social distancing, disposable auction paddles, fresh pens, or spacing out the crowds, our members are quickly adapting to show that we’re very much open for business.
“But we do know these are the results of just one week. We still have a lot of work to do to ensure our vendors and buyers are confident to transact in the weeks and months ahead.
“We’ll keep challenging ourselves to find new solutions to improve our services, in line with community expectations.”
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said it had been another impressive week in Sydney and NSW, with the auction day clearance rate strong and both registered and active bidders on the rise.
In Sydney, Ray White reported a preliminary clearance rate of 85 per cent.
“Buyers who are committed to purchasing are turning up at auctions and continuing to bid with fierce aggression,” Mr Pattaro said.
“We’re continuing to see large crowd numbers at popular auctions across New South Wales, and beyond, into other states.”
Ray White Victoria/Tasmania Chief Auctioneer Matt Condon said despite all eyes being on the real estate market this week, Victoria had seen a big increase in auctions scheduled.
“We’ve seen an increase in the number of active bidders per auction and crowd sizes are as strong today as they have been in recent weeks,” Mr Condon said.
“Our group has been taking extra precautions by including single use pens, hand sanitisers and tissues – but with this in mind – this hasn’t translated into things slowing down. Bidders are still bidding with confidence.”
And that confidence was clear to see in Doncaster East where Ray White Manningham Senior Sales Executives Harry Lai and Jarrod Tyler successfully managed the sale of 5 Gainsborough Street for $1,301,000 – $191,000 over reserve.
“Incredibly, this auction came down to two bidders at $1,200,000 and they fought it out all the way to the sale price, with the winner securing the property with just a $1,000 bid,” Mr Lai said.
Meanwhile, Ray White reported a Melbourne preliminary clearance rate of 68 per cent.
Ray White QLD Chief Auctioneer Mitch Peereboom said he was proud to see both buyers and sellers out in force today.
“We take our responsibility for the public’s health and safety so seriously and we were able to create an environment where buyers and sellers were comfortable and crowds were able to still come along and attend our auctions,” Mr Peereboom said.
“We haven’t seen any signs of 2020 slowing down as we continue to see consistency and we’re thrilled to see that buyers are still seeing great value in the market.”
That was a sentiment that was echoed by Ray White New Farm Principal Haesley Cush who said it had been an exciting day with five of six properties selling via an auction campaign.
“We’re still seeing strong results and we’re seeing huge numbers through our open homes. We launched a New Farm property recently and in the second week we’ve already had more than 150 groups through to inspect,” Mr Cush said.
Ray White SA Chief Auctioneer John Morris said despite the doom and gloom over the past few days, it seemed it was high times, rather than end of times for Adelaide and South Australia.
“I’ve got reports of auctions coming through with 20, 60 and even 200-plus attendees, with 15 registrations the highest, so it seems there are positive outcomes for everybody,” Mr Morris said.
“Just as it was before, it seems auctions are still selling, crowds are still gathering, and agents are really taking it upon themselves to ensure everything is clean and hygienic for all involved.”