Auction volumes were down slightly on last week, but the preliminary clearance rate inched higher to 79 per cent, after 2892 properties taken to auction across the combined capitals.
In comparison, the previous week saw 3016 homes taken to auction, returning a preliminary auction clearance rate of 78.6 per cent, which revised down to 77.2 per cent at final figures.
This time last year, amidst the COVID-19 restrictions, 417 homes were taken to auction, with 60.4 per cent of reported results recording a sale.
There were 1330 homes taken to auction in Melbourne this week, compared to 1411 over the previous week and 127 this time last year.
Of the 1154 results collected so far this week, 77.6 per cent were successful, up from the previous week when a 76.5 per cent preliminary clearance rate was recorded. This later revised down to 74.1 per cent at final figures.
Sydney saw 1149 homes taken to auction this week, compared to 1146 over the previous week and 194 this time last year.
Preliminary results show that of the 967 auctions reported so far, 81.6 per cent were successful.
Last week’s preliminary clearance rate was a higher 82.6 per cent, which revised down to 81.4 per cent at final figures.
CoreLogic explained Sydney’s final clearance rate has held above 80 per cent for 13 of the past 14 weeks and this week is likely to be no different once the remaining results are collected.
The smaller capitals
Across the smaller capital cities, Canberra recorded a preliminary auction clearance rate of 87.8 per cent, followed by Adelaide where preliminary results show 78.5 per cent of auctions were successful.
Brisbane recorded a preliminary auction clearance rate of 73.3 per cent, while in Perth, 60 per cent of reported auctions were successful.
Domain also reported a preliminary clearance rate of just below 80 per cent on the back of lower volumes this week.
Their data indicates 2401 properties were taken to auction in the major markets resulting in a success rate of 79.1 per cent.
So far, results have been provided for 1796 of those auctions with 1421 properties selling (to the value of $1339.2 million), while 161 properties were withdrawn.
The volume is down on last week when 2569 properties were taken to auction and the clearance rate was 77 per cent.
Results were provided for 2294 of those auctions, with 1766 properties selling (to the value of $1679 million), while 187 were withdrawn.
This time last year the auction market was still feeling the effects of a national lockdown. Only 268 properties were taken to auction in the same week last year and the success rate was 59.2 per cent.
Results were provided for 238 of those auctions, and 141 properties sold (to the value of $162. 4 million) while 37 properties were withdrawn.
Sydney has continued its hot streak, after another auction week that saw the preliminary clearance rate top 80 per cent.
Domain reported 990 properties were taken to auction in Sydney in the past week and the preliminary success rate was 81.5 per cent.
Results were provided for 717 of those auctions, with 584 properties selling (to the value of $664.4 million), while 72 properties were withdrawn.
Last week, Sydney enjoyed a higher volume of 1016 properties taken to auction, and the final clearance rate settled at 78.3 per cent.
Results were provided for 957 of those auctions, with 749 properties welling (to the value of $853.6 million), while 107 properties were withdrawn.
This time last year, Sydney’s clearance rate was a respectable 69.6 per cent despite the lower volumes due to lockdown.
Only 142 properties were taken to auction this time last year. Results were provided for 112 of those auctions, with 78 selling (to the value of $106.6 million), while nine were withdrawn.
Melbourne’s volume was also lower this week compared to last week, with 1159 properties going to auction, resulting in a preliminary success rate of 77.3 per cent.
So far, results have been provided for 887 of those auctions, with 686 properties selling (to the value of $568.1 million), while 71 properties were withdrawn.
Last week Melbourne’s clearance rate settled at 75.4 per cent after 1252 properties were taken to auction.
Results were provided for 1098 of those auctions, with 828 properties selling (to the value of $672.9 million), while 64 properties were withdrawn.
This time last year only 80 properties were taken to auction in Melbourne and the clearance rate was 49.3 per cent.
Results were provided for 75 of those auctions, with 37 properties selling (to the value of $36.6 million) while 19 properties were withdrawn.
Ray White results
The Ray White Group kicked off their auction report this week by welcoming the Federal Government’s Budget initiatives.
“The First Home Super Saver and the Family Home Guarantee were prompted by a hot property market that is showing little signs of slowing down with winter on the way,” they said.
“Certainly, Ray White auction metrics were as good as ever with the group recording a 73 per cent national preliminary clearance rate.
“It looks like the pent up buyer demand spilling over from 2020 is yet to dissipate as 4.8 average registered bidders showed up at Ray White auctions across the country.
“Proving how serious many of these buyers were, Ray White’s average active bidder number was also high with three per auction.”
They Group noted sellers had cause for celebration after achieving 12.04 per cent more than the highest offer prior under the hammer.
With property prices at historic highs and new buyer incentives that Ray White Group Managing Director Dan White described as “great news for the property industry”, more and more Australians are heeding the call to sell now, they said.
“Despite appraisal levels and new listing authority figures rising, intense buyer demand still rules the market with stock being snapped up within days.
“New listings added to the market are now well above long-term averages but strong demand is keeping overall advertised stock levels low.
“The number of fresh listings added to the housing market has shown a substantial lift relative to the past two years.”
They further reported that 8213 new listing authorities were signed by a Ray White member in April across Australia and New Zealand, a rise of 11 per cent on the same month in 2019.
“The rise in new listing numbers signals an improvement in seller confidence. More homeowners are taking advantage of strong selling conditions while it’s still a sellers’ market,” they said.
“Ray White total advertised stock levels are down 30 per cent on two years ago at 15,000 listings across Australia. Such a low total listing number, at a time when new listings are above average, reflects the strength of buyer demand, fuelling the current rapid rate of absorption.”
New South Wales
In Sydney, Ray White New South Wales chief auctioneer Alex Pattaro said there are still plenty of buyers in the market however there is also a slight sense of cautiousness.
“Auction continues to remain the best method of sale to achieve premium prices. We saw countless times today buyers make pre-auction offers and properties selling for a higher amount under the hammer,” he said.
“The property prices in the marketplace remain at record highs and sellers within the market are urged to understand the conditions before making decisions.”
In Melbourne, Ray White Victoria | Tasmania chief auctioneer Matthew Condon said Victoria’s real estate market continues to go from strength to strength.
“Despite the significant increase in auction volume based on preliminary data from the Ray White group we’ve seen an increase in registered bidder activity and our overall clearance rate on the ground,” he said.
“Big crowds arrived at each auction, despite the rain, and weather. Auctions were slow to start however quickly built momentum with a large percentage of properties selling well in excess of reserve price.”
Ray White Queensland chief auctioneer Mitch Peereboom said it was a cracking Saturday with some outstanding results.
“Today capped off a huge week of auctions around Queensland. If you look at sale prices and you look at the segments that are performing the only words to use are ‘across every market,” he said.
“We are seeing exceptional competition and a great number of registered bidders across our auctions today and through our in-rooms during the week.”
Ray White South Australia chief auctioneer John said the market is still white hot.
“In the film ‘The Matrix’, it says that deja vu is a glitch in the programming. Well, there’s certainly plenty of glitches in the programming at the moment in South Australia, the market is still white hot,” he said.
“We’ve gotten an average of about 11 registered bidders from the auctions that I’ve been part of. There has been plenty of action that looks only set to rise, we’ve got 30 odd per cent market share of auctions for this week, which is absolutely fantastic and pretty much becoming the norm for Ray White in South Australia.”