The preliminary clearance rate has hit its highest peak since the start of the coronavirus pandemic, coming in at 77 per cent on the back of volume that has exceeded both last week and last year.
This week, CoreLogic notes 1757 homes were taken to auction across the combined capital cities, up from 1427 the previous week and 1555 this time last year.
“Of the 1433 results collected so far, 77 per cent were successful which is the highest preliminary clearance rate recorded since the week ending 1 March (77.1 per cent),” CoreLogic explained.
Last week, a preliminary clearance rate of 76.2 per cent was recorded across the combined capitals, revising down to 66.9 per cent at final figures, while this time last year, 68.0 per cent of reported auctions were successful.
Melbourne’s volume continues to increase, with 604 auctions in the Victorian capital this week compared to 490 last week and 255 this time last year.
“The week leading up to Melbourne Cup traditionally sees auction volumes dip across the city however this year doesn’t appear to be impacted to the extent that we would usually see which is not overly surprising given restrictions across the city have only started to ease,” CoreLogic stated.
“Of the 530 results collected so far this week, 75.8 per cent have been successful, increasing on last week’s preliminary clearance rate of 72.6 per cent, which revised down to 63.5 per cent by final collection.”
In Sydney, 864 homes were taken to auction this week, increasing from 700 over the previous week and 843 this time last year.
“The higher volumes saw the preliminary clearance rate hold reasonably firm at 79.6 per cent, while the previous week recorded a preliminary clearance rate of 80.4 per cent, revising down to 70.4 per cent at final figures,” CoreLogic noted.
“This time last year, 74.6 per cent of reported auctions were successful.”
The smaller capitals
Across the smaller cities, Canberra recorded the highest preliminary clearance rate at 81.7 per cent, followed by Adelaide (77.2 per cent).
Domain also reported an elevated clearance rate on the back of higher volume than both last week and last year. This week their data indicated the national clearance rate hit 75.1 after 1361 properties were listed for auction.
So far results have been reported for 985 of those auctions, with 740 properties successfully selling (to the value of $631.5 million), while 115 properties were withdrawn.
Last week, Domain recorded 1081 properties listed for auction and a clearance rate of 68.2 per cent. Results were provided for 919 auctions, with 627 properties successfully selling (to the value of $496.7 million) while 111 properties were withdrawn.
This time last year, 1145 properties were listed for auction and the clearance rate was 66.4 per cent. That result was determined after results were provided for 1039 auctions, with 690 successfully selling (to the value of $867.7 million), while 91 properties were withdrawn.
Sydney had a great weekend with the preliminary clearance rate sitting at 77.4 per cent after 768 properties were listed for auction. So far results are in for 539 of those properties, with 417 successfully selling (to the value of $408.9 million), while 67 were withdrawn.
Last week, the clearance rate settled at 72.9 per cent on the back of slightly lower volume, with 638 properties listed for auction. Results for 531 of those auctions were provided, with 387 properties successfully selling (to the value of $343.9 million), while 65 properties were withdrawn.
This time last year, Sydney’s volume and clearance rate was lower. In the same week in 2019, the clearance rate was 72.6 per cent after 699 properties were listed for auction. Results on 635 of those auctions were provided, with 461 properties successfully selling (to the value of $671.8 million), while 57 properties were withdrawn.
Melbourne had an encouraging increase in volume, according to Domain’s data, along with a jump in the preliminary clearance rate which this week hit 73.9 per cent after 395 properties were listed for auction.
Results are in for 306 of those properties so far, with 226 successfully selling (to the value of $154.7 million), while just 34 were withdrawn.
Last week the clearance rate was 58.8 per cent after 301 properties were listed for auction. Results were provided on 257 of those auctions, with 151 properties successfully selling (to the value of $97.9 million), while 36 were withdrawn.
In the same week last year, only 175 suctions were scheduled and the clearance rate sat at 64.5 per cent. Results were provided for 152 of those auctions, with 98 properties successfully selling (to the value of $92.3 million), while 14 properties were withdrawn.
Ray White results
Ray White reported buyers were out in force across the country with sellers getting a lot more than just Halloween candy as October came to a close with a number of outstanding results.
The Ray White Group booked a healthy preliminary clearance rate of 79.9 per cent.
New South Wales
Ray White said Sydney was the star of the show with a strong preliminary clearance rate of 83.3 per cent. The group also saw 6.3 registered and 3.1 active bidders per property, on average.
Ray White New South Wales Chief Auctioneer Alex Pattaro said bidder registration numbers had once again skyrocketed in Sydney.
“This once again showcases the consistent competition within the market. This Saturday shows we’re up on average two registered bidders per auction when compared to a similar Saturday this time last year,” Mr Pattaro said.
“Auction volume is also up when compared to last year with more sellers and agents opting to take full advantage of the competition and obtaining premium prices.
“With more sellers coming to market and a high number of registered bidders, it wouldn’t surprise me if we saw a number of suburb and street records broken.”
Ray White Victoria and Tasmania Chief Auctioneer Matthew Condon said the property market in the Garden State was coming back with a vengeance.
“What’s really shining through from our innovative auction data is the fact our auctions are now averaging six registered bidders per auction – so that’s huge competition,” Mr Condon said.
“We’re also seeing an increase in the number of active bidders on average per auction which tells us that buyers certainly aren’t afraid to put their hands up and compete for their desired home.
“These statistics are spilling into our auction day clearance rate too, with preliminary data showing 71 per cent of properties selling under the hammer this week, which is a fantastic result given the surge in volume this week.
“The demand for property is still higher than the supply available in Victoria and there’s now a real opportunity to come to the market and get your property sold unconditionally before Christmas.”
Ray White Queensland Chief Auctioneer Mitch Peereboom said strong sales in Brisbane wrapped up yet another great week for the Sunshine State.
“We’re seeing strong bidding with the average number of registered bidders remaining consistent for the entirety of October,” Mr Peereboom said.
“We had great sale prices across all market segments today but the absolute stand-out has to be between the $600,000 to $1 million range with some great sales there.
“We’re seeing a great run into the end of the year. If you’re looking at coming to the market, be sure to talk to your local Ray White agent to talk about what’s going on in the market.
“If you’re thinking about when to actually come on, we do still have time to list before Christmas, and if you want to be settled by Christmas then that’s a possibility if you do bring your property to the market in the next few weeks.”
Ray White SA Chief Auctioneer John Morris said if he were a GP and his patient was the South Australian auction market, he would be signing it off with an absolute clean bill of health.
“The market is absolutely red-hot. We had 44 auctions scheduled for the week which is great,” Mr Morris said.
“Out of the ones conducted so far this Saturday, we’ve had a strong preliminary clearance rate, with 6.2 average registered bidders per auction.
“Less than 15 per cent of auctions had no active bidding, and of all the properties that I’ve auctioned off this weekend, I’ve had a 100 per cent clearance rate so far.”