The preliminary clearance rate continues to hold firm, reaching 73.2 per cent on the back of higher volume this week, with CoreLogic noting there appears to be momentum building in the property market.
Their data indicates 1758 homes were taken to auction across the combined capital cities this week, which is slightly higher than the previous week when 1747 auctions were held.
“Of the 1420 results collected so far, 73.2 per cent were successful,” CoreLogic stated.
“Last week, a preliminary clearance rate of 77 per cent was recorded across the combined capitals, revising down to 71.0 per cent at final figures. “
One year ago, 2412 homes were taken to auction and 70.6 per cent of reported auctions were successful.
“The broader trend in auction markets align with other indicators pointing to some momentum building in the housing market recovery,” CoreLogic commented.
“Housing values are now trending higher across every capital city, including Melbourne, average selling time has reduced and mortgage activity has rebounded strongly.”
In Sydney, 853 homes were taken to auction this week, compared to 854 over the previous week and 948 this time last year.
The preliminary clearance rate came in at 78.6 per cent this week, while the previous week recorded a preliminary clearance rate of 79.6 per cent, revising down to 73.1 per cent at final figures.
This time last year, 76.8 per cent of reported auctions were successful.
Melbourne was host to 606 auctions this week, while the previous week also saw 606 auctions held across the city.
This time last year a higher 1032 homes were taken to auction.
Of the 507 results collected so far for this week, 71.8 per cent were successful, falling from last week’s preliminary clearance rate of 75.8 per cent, which revised down to 70.1 per cent at final figures.
One year ago, 71.7 per cent of reported auctions were successful.
The smaller capitals
Across the smaller cities, Adelaide recorded the highest preliminary clearance rate at 77.8 per cent, followed by Canberra (76.2 per cent).
Domain also reported a strong clearance rate of 72.9 per cent, after their data indicated 1439 properties were listed for auction across the capitals at the weekend.
So far results are in for 1063 of those auctions, with 775 properties successfully selling (to the value of $668.7 million), while 141 were withdrawn.
That volume was a slight increase on last week but down on the same weekend last year. Last week a clearance rate of 70.7 per cent was recorded after 1364 properties were taken to auction.
Results for 1237 of those auctions were provided, with 875 properties successfully selling (to the value of $733.9 million), while 156 were withdrawn.
The same week last year enjoyed both higher volume and higher total value, but the clearance rate was slightly lower.
At the same time in 2019, 2092 properties were listed for auction and the clearance rate was 67.8 per cent. Breaking that down, results for 1888 auctions were provided, 1281 properties successfully sold (to the value of $1496 million) and 97 properties were withdrawn.
Sydney’s clearance rate continued to see more than three quarters of all properties successfully sold.
This week, 776 properties were listed for auction in the harbour city and the preliminary clearance rate hit 76.3 per cent.
That comes off the back of results being provided for 569 of those auctions, with 434 properties successfully selling (to the value of $407.7 million), while 74 properties were withdrawn.
Last week, Sydney’s final clearance rate was 72.2 per cent after 771 properties were listed for auction. Results were provided for 691 of those auctions, with 499 properties successfully selling (to the value of $482.2 million), while 97 properties were withdrawn.
In the same week last year, Sydney’s clearance rate was similar at 74.7 per cent, but the volume was slightly higher with 819 properties listed for auction.
Results were provided for 733 of those auctions, with 547 properties successfully selling (to the value of $808.9 million) while 55 properties were withdrawn.
Melbourne’s preliminary clearance rate continues to hold firm as volume steadily increases. This week the clearance rate reached 68.1 per cent after 480 properties were listed for auction.
So far, results are in for 364 of those auctions, with 248 properties successfully selling (to the value of $197.3 million), while 55 were withdrawn.
Last week, Melbourne’s clearance rate settled at 69.9 per cent after 394 properties were listed for auction. Results were provided for 362 of those auctions with 253 properties successfully selling (to the combined value of $175.6 million) while 42 properties were withdrawn.
In the same week last year, Melbourne’s clearance rate was 66.5 per cent on the back of 1004 properties being listed for auction.
Results were provided for 910 of those auctions, with 605 properties successfully selling (to the value of $583.1 million), while 35 were withdrawn.
Ray White results
Low supply and high demand pushed the Australian property market into “nirvana territory for sellers”, according to Ray White’s weekly auction report.
The group’s data indicates a 12 per cent year-on-year rise of Australian auctions booked this week at 458, and of the 297 scheduled, 79 per cent sold under the hammer.
They also reported 5.2 people on average registered to bid at auction, with 3.1 actively bidding.
“The highest numbers of bidders seen was in Adelaide where a whopping 24 buyers registered for this low set brick and tile at 14 St Ives Dr, Parafield Gardens, which is a suburb which has seen incredible auction results in recent weeks with Ryan Stapleton of Ray White Norwood,” Ray White reported.
“The top sale of the day under the hammer was in Summer Hill, Sydney where Erik and Lisa Polsek sold 11 Grosvenor Cres for $2.53 million to a local family upgrading.”
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said the central bank’s cash rate cut definitely prompted an uplift in open for inspection attendance and auction registrations at the weekend.
“Buyers are getting anxious and looking to purchase a home on this side of Christmas, as nobody knows how the market will pan out next year,” he said.
“There is a strong positive sentiment within the market and confidence is at an all-time high.
“We could see a late rush coming into December with some sellers looking to cash in before the Christmas.
“Prices are strong and competition is at a high, creating a tremendous recipe for a great outcome for sellers.”
Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said sellers still had a two-week window to list and sell by Christmas.
“But the window is closing,” Mr Condon said.
“Given we still have huge demand for property and lack of supply, the time is right right now.
“There’s still very high registered bidders, and very active bidders too – probably the highest we’ve had all year.
“Buyers are very active and that’s why we are still holding online auctions as we are getting on average 50-60 people watching online. I am still calling auctions online – and while I am getting sick of my own voice – it’s the only way for us.”
In the Sunshine State, auctions continued to perform well with an increasing number of buyers looking to move up from the southern states, many properties selling sight unseen.
Ray White Queensland Chief Auctioneer Mitch Peereboom said the headline story this week was the confidence of buyers who are bidding.
“Record low interest rates mean that buyers are wanting to invest their money in the property market,” Mr Peereboom said.
“As the run into Christmas continues, we are so confident with all the stock coming onto the market right now. We believe there will be a number of buyers for all properties. This is going to result in some great prices.
“It is across all markets that we are seeing this level of activity and confidence. A standout auction was in Durak today on the outskirts of south-west Brisbane; we had 10 registered bidders and it sold for $735,000 which are the kind of numbers we haven’t seen much of before,” he said.
“There are good news stories from across the grounds – from small inner-city units to standard suburban homes to large acreage properties.”
Ray White South Australia Chief Auctioneer John Morris said Saturday was another incredible auction day in SA.
“Last week we had a 68 per cent clearance rate, 6.1 bidder registrations on average and it is looking like this week will be much the same,” Mr Morris said.
“Of all the auctions I have called this week, I had a 100 per cent clearance rate, and from what I am hearing around the grounds there are plenty of registered bidders,” Mr Morris said.
“I am hoping and confident that we will beat our phenomenal clearance rates from the previous weeks,” he said.