Industry NewsNationalReal Estate Industry News

Clearance rate continues to climb on the back of higher volumes

Both auction volumes and the clearance rate lifted this week, with 1,262 homes scheduled for auction in the capitals, returning a preliminary clearance rate of 66.1 per cent.

CoreLogic reported this was up from the 63.3 per cent preliminary clearance rate returned last week across 1181 auctions, which later revised down to 59.3 per cent at final figures.

Melbourne

There were 564 homes scheduled for auction in Melbourne this week, increasing on the 471 auctions last week.

The city returned a preliminary success rate of 65.8 per cent, rising on last week’s preliminary result of 61 per cent, which by final result came in at 56.3 per cent.

The figures were almost on par with the same period last year when the city recorded 635 auctions and a 68.9 per cent success rate.

Sydney

Sydney’s preliminary figures show that 68.5 per cent of homes sold at auction this week, up on the 67.3 per cent preliminary figure last week, which later came in at 63.7 per cent by final results.

“This week’s improved Sydney clearance rate was across a slightly lower volume of auctions over the week, with 526 scheduled from 545 the previous week,” CoreLogic reported.

“One year ago, 558 Sydney homes were taken to auction returning a final clearance rate of 60.9 per cent.”

Across the smaller auction markets performance was mixed. Canberra continued to have the highest clearance rate of the capital city markets, which is a trend seen over the previous four weeks.

The preliminary clearance rate across Canberra for the week ending 21 June was above 70 per cent, while only 20 per cent of Perth auctions recorded a successful result.

Domain results

Domain’s numbers also showed a rise in the preliminary clearance rate on the back of higher volumes.

This week they reported 1019 properties were listed for auction nationally, with 634 auctions reported, 466 properties sold and 115 withdrawn. This resulted in a national clearance rate of 62.2 per cent with the collective value of the properties sold equalling $333.4 million.

Last week 948 properties were listed for auction, 761 results were reported, 488 properties sold, and 93 were withdrawn, resulting in a clearance rate of 57.1 per cent and a combined value of properties sold equalling $320.7 million.

Compared to the same time last year, volumes were slightly lower but the combined value is significantly down. In the same week last year, 1,190 properties were listed for auction, 983 results were reported, 660 properties were sold, and 106 were withdrawn. This led to a clearance rate of 60.6 per cent and a total value of property sold equalling $712.8 million.

Sydney

Sydney’s clearance rate was slightly lower than last week, coming in at 62.6 per cent this weekend compared to 63.9 per cent the week prior. That was off the back of 452 properties listed for auction this weekend, 266 results reported, 213 properties sold for a combined value of $170.1 million, and just 74 properties withdrawn.

Last week 452 properties were slated for auction, 343 results were reported, 251 properties sold for a combined value of $172.7 million, and 50 properties were withdrawn.

Melbourne

After a relatively low clearance rate of 49.7 per cent last week, Melbourne showed a marked improvement this weekend, coming in at 61.7 per cent. This week’s result came off the back of 480 properties listed for auction, 313 results reported, 216 properties sold at a combined value of $140 million, and 37 withdrawals.

Last week, 410 properties were listed for auction, 345 results were reported, 190 properties sold for a combined value of $126.8 million, and 35 properties were withdrawn.

Ray White results

Ray White said all signs currently indicate a sellers’ market with bidders defying dropping temperatures across the country to contribute to a ‘red hot’ preliminary clearance rate of 68.6 per cent for the brand.

Victoria

They noted the stand-out was Melbourne, with the city enjoying a preliminary clearance rate of 73.1 per cent, and an average of 4.3 registered and three active bidders per auction.

Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said this week had seen the highest volume of auctions scheduled for the past 12 weeks.

“It’s great to see that the increase in supply was met with even higher demand,” Mr Condon said.

“Based on preliminary data, Ray White Victoria is reporting an increase in the average amount of active bidders per auction, to three.

“Earlier today an announcement was made by the Victorian Premier that the easing of restrictions for real estate would be deferred for a further three weeks.

“Ray White’s continued focus on online and on-site auctions will ensure that we’re well-placed to achieve exceptional results for our clients, while providing a safe environment for all involved.

“This week, Ray Victoria is expecting one of our strongest clearance rates for 2020, and that should give vendors confidence that now is the time to list and sell.”

New South Wales

Ray White NSW Chief Auctioneer said the energy in the auction market continued to increase and there was never a better time to be selling than now.

“Auction crowds and open for inspection attendance has been the hot topic this weekend and we’re seeing higher than usual for both,” Mr Pattaro said.

“More buyers are coming to the market and have started to get a feel for what’s out there, leading to more competition.

“Sydney’s average registered bidders were at five this weekend, with three active – an example of how strong competition is at the moment.

“Prices across Sydney appear to be stable and we continue seeing higher auction volume indicating the strength in the market.”

Queensland

In the Sunshine State, Ray White Queensland Chief Auctioneer Mitch Peereboom said clearance rates continued to hold as buyer demand pushed averaged registered bidders up.

“We’re creating competition every week and we’re so proud of our members who are committed to auctions,” Mr Peereboom said.

“Auction volumes are comparable to this time last year as vendors see value in chasing the best price.”

South Australia

Ray White SA Chief Auctioneer John Morris said Ray White held 65.5 per cent of the auction market share for the week.

“We’re absolutely dominating the auction market here. Preliminary clearance rate is at 40 per cent which is up on last year – campaign clearance is at 50 per cent,” Mr Morris said.

“Eighty per cent of our auctions have bidding which is a fantastic figure and the average registered bidders is extremely high at 9.4 per auction.”

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