Auction activity almost doubled this week as the capital cities kicked up a gear following the traditional Christmas slowdown.
CoreLogic reported 1122 homes went to auction at the weekend, effectively doubling last week’s total of 625.
Higher volumes also equated to higher clearance rates with a preliminary national rate just shy of 70 per cent. Even as that figure is revised over coming days it’s still expected to exceed last week’s final clearance rate of 61 per cent.
CoreLogic notes when compared to this time last year all indications are positive.
“…both volumes and clearance rate are higher than what we were seeing last year when 928 capital city homes were auctioned and just over half sold.”
In what will come as little surprise, Sydney led the auction charge, with 428 auctions held across the city and a preliminary clearance rate of 79.9 per cent.
Melbourne narrowly edged in behind them, with 401 homes taken to auction and a preliminary clearance rate of 74 per cent.
Elsewhere the performance varied. Canberra remained steady in volume with 70 auctions, but the clearance rate spiked to 77.8 per cent.
In Brisbane only 34.4 per cent of the 76 homes take to auction sold under the hammer, and Adelaide saw a drop in volume with a clearance rate of 43.2 per cent.
“Over the coming weeks we are expecting the number of auctions to rise further, providing a timely test of the market’s depth,” CoreLogic reflected.
First home buyers leading the charge
Ray White also reported a positive weekend of auctions nationally, with first home buyers out in force on the back of the Federal Government’s First Home Deposit Loan Deposit Scheme.
Ray White members had 375 auctions booked this week, up 26 per cent up on the same week last year. Looking ahead, February 2020 so far sits at 2131 auctions scheduled which is 25 per cent higher than last year which shows the confidence in the market.
The national clearance rate was sitting at 74 per cent, late on Saturday, according to Ray White’s own data warehouse.
Across Sydney, Ray White members scheduled 84 auctions, up a huge 74 per cent year on year. Sydney’s preliminary clearance rate was 79 per cent for the Ray White brand.
Ray White NSW Chief Auctioneer Alex Pattaro said first home buyers were out in their droves this weekend with an influx of people looking to get into the property market.
“There’s still a shortage of stock and many first home buyers believe now is the time to buy, believing prices are set to rise. There is a strong sense of competition in the market right now.”
Ray White Surry Hills Director Ercan Ersan said 25/140-152 New Canterbury Rd, Petersham was the perfect example of first home buyer’s hunger to get into the market. The property sold for $752,000 after a bidding war broke out between 13 registered bidders.
“That property is a good sign that the first home owner grant is working with so many first home buyers keen to buy,” Mr Ersan said.
Ray White Victoria Chief Auctioneer Matthew Condon said it was an exceptional day of auctioneering across the group with beautiful weather bringing out big crowds.
“Based on preliminary data from the Ray White Group, we have seen a higher number than normal of active bidders. Buyers were very proactive with their bidding strategy and overall Ray White Victoria is expecting a very strong auction day clearance rate.”
The network returned a preliminary clearance rate of 80 per cent in Melbourne, based on Ray White data.
Despite tepid results reported by CoreLogic, Ray White Queensland Chief Auctioneer Mitchell Peereboom said it had been a great day across the network.
“The standout price bracket of the day is the $400,000 to $600,000 with multiple properties selling in that range with up to five registered bidders on each. We have also had some outstanding results in the $700,000 to $1 million range which is also performing beautifully.”