Spring selling season is under way in earnest with this week proving the busiest auction week since June while the preliminary clearance rate climbed to its highest point since May.
CoreLogic’s data indicated there were 2190 auctions across the combined capitals, returning a preliminary clearance rate of 62.5 per cent.
This volume was an increase on last week when 1918 auctions took place and higher than this time last year when 1672 auctions were held.
It also proved the busiest auction week since late June.
Meanwhile, the clearance rate also climbed a little to its highest point since late May.
This week’s preliminary clearance rate was 0.8 per cent higher than last week when an initial success rate of 61.7 per cent was recorded. That figure later revised down to 59.7 per cent.
The success rate was, however, lower than last year when 75.1 per cent of auctions were successful.
Next week is likely to see less auction activity due to public holidays slated in various states around the country, including the AFL Grand Final in Melbourne, with CoreLogic predicting 1400 auctions will take place.
There were 996 homes taken to auction in Melbourne this week, which was an increase of 17.6 per cent on last week when 847 auctions took place.
Of the results collected so far, 64.4 per cent were successful, up 1.2 percentage points from the previous week when an initial success rate of 63.2 per cent was recorded.
This later revised down to 61.9 per cent at final figures.
“This time last year, Melbourne was still navigating its sixth lockdown, with the clearance rate negatively impacted at 58.5 per cent,” CoreLogic explained.
There were 771 auctions in Sydney this week, up 10.5 per cent from the previous week when 698 occurred, although down 1.9 per cent from this time last year when 786 auctions were held across the city.
Of the results collected so far, 60.2 per cent were successful, down just 40 basis points from last week’s preliminary clearance rate of 60.6 per cent, which revised down slightly to 60 per cent at final figures.
“Last week’s final clearance rate was the highest the city has seen since the week ending 10 April when 61.7 per cent of Sydney auctions were successful,” CoreLogic noted.
“This time last year, 80.5 per cent of homes taken to auction across the city were sold.”
The smaller capitals
Across the smaller capital cities, Brisbane was the busiest auction market this week with 168 homes taken to auction across the city, followed by Adelaide (132) and Canberra (102).
There were 20 auctions held in Perth this week, and just one in Tasmania.
Adelaide recorded the strongest preliminary clearance rate (75.6 per cent), followed by Canberra (65.8 per cent) and Brisbane (52.8 per cent).
In Perth, 10 results have been collected so far, with just three returning a successful result (30 per cent), while the one auction held in Tasmania was successful.
Domain has reported a preliminary clearance rate of 62 per cent after tracking 1800 auctions across the major capitals.
At this stage, results have been provided for 1263 of those auctions, with 783 properties selling (to the value of $642.8 million), while 192 properties were withdrawn.
Last week, the final clearance rate settled at 58.8 per cent after 1613 properties went to auction.
Results were provided for 1298 of those auctions, with 822 properties selling (to the value of $654 million), while 194 properties were withdrawn.
This time last year, the clearance rate was a much higher 77.3 per cent after 1091 properties went to auction.
Results were provided for 1011 of those auctions, with 781 properties selling (to the value of $1177.1 million), while 124 properties were withdrawn.
Compared to this time last year, Sydney’s clearance rate had dropped almost 20 per cent, while the value of property sold at auction has also declined significantly and the withdrawal rate has increased.
This week, 664 Sydney properties went to auction, resulting in a preliminary clearance rate of 62.1 per cent.
So far, results are in for 419 of those auctions, with 260 properties selling (to the value of $268.9 million), while 110 properties were withdrawn.
Last week, 604 properties went to auction, resulting in a final clearance rate of 61.6 per cent.
Results were provided for 495 of those auctions, with 305 properties selling (to the value of $299 million), while 106 properties were withdrawn.
This time last year, Sydney’s final clearance rate was 80.5 per cent after 549 properties were taken to auction.
Results were provided for 524 of those auctions, with 422 properties selling (to the value of $812.5 million), while just 55 properties were withdrawn.
Melbourne’s clearance rate is on par with the same time last year, but volume is significantly higher.
This week, 871 Melbourne properties went to auction, resulting in a preliminary clearance rate of 62.6 per cent.
So far, results are in for 673 of those auctions, with 421 properties selling (to the value of $294.8 million), while 68 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 58.5 per cent after 759 properties went to auction.
Results were provided for 667 of those auctions, with 390 properties selling (to the value of $264.3 million), while 67 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 65.9 per cent after only 281 properties went to auction due to ongoing lockdowns in Victoria.
Results were provided for 232 of those auctions, with 153 properties selling (to the value of $177.5 million), while 59 properties were withdrawn.
Ray White results
The Ray White Group noted an increase in auction volume and clearance rates this week has pointed to a boost in activity as spring selling gets under way in earnest.
This week, the Ray White Group scheduled 601 auctions, which was the highest volume seen in seven weeks.
On Saturday, the group recorded a healthy preliminary clearance rate of 69 per cent, with four registered bidders and 2.7 active bidders on average per auction.
The top auction sale of the day was in Sydney.
Ray White Upper North Shore agent Coco Cui Roskam sold 3 Biara Pl, Turramurra for $5.42 million after four of the five registered bidders got involved.
Ms Roskam sold the five-bedroom property to a young family upsizing.
Agents from both Brisbane and Adelaide tied for the most bidders on Saturday.
Judi O’Dea of Ray White Paddington registered 17 bidders at her 153 Taringa Parade, Indooroopilly auction.
Ray White New South Wales chief auctioneer Alex Pattaro said there was plenty of positive energy circulating the Sydney market.
“Buyers are out and looking to secure a home, though sellers are still required to come off their reserve prices in order to meet the market,” he said.
“Buyers are also increasing up to 10 per cent on their pre-auction offers, particularly when competition presents itself.
“Auction is certainly the best method of sale to ensure a premium result within the shortest amount of time.”
Ray White Victoria chief auctioneer Matthew Condon said with next week being the AFL Grand Final long weekend, a number of sellers chose to bring their plans forward and schedule their auction for this weekend.
“This created a spike in auction volume across the state with 182 auctions scheduled for Ray White Victoria,” he said.
“The rain and cold weather created a decline in crowd sizes. However, it did not deter bidders from attending auctions to bid on their desired property.
“Based on preliminary data from the Ray White Group, this week has seen a significant increase in the average number of confirmed bidders at auction.
“It’s important to remember that bidders will only actively bid and engage at auction when they see value.
“Sellers who chose to meet the market today were rewarded with bidding, competition and ultimately a good result.
“However, when a seller’s expectation around price was not in line with market expectations, those auctions struggled to gain momentum.”
Ray White Queensland chief auctioneer Gavin Croft said Ray White Queensland is on the verge of 5000 auctions already for the calendar year and at a time where spring is upon us.
“I think this is the first week where we’ve seen almost a spring-like feel, I guess, starting with some warmer weather,” he said.
“Also auction volumes across Brisbane are up 55 per cent on last week and early indications are that average registered bidders as well as average active bidders have remained firm.
“For me, I’ve observed stronger depth in the $2 million plus price bracket at the moment, with affordability being tightened at the lower end and I guess that’s off the back of interest rate rises.
“Despite this, the sub million-dollar market is active, but FOMO is no longer part of the narrative, and therefore sellers are not seeing the dizzy heights of sales made some two and three months ago.
“They continue to transition their thinking to a new market and again, I’ve said this a few times before, agents are playing such a significant role in assisting them to make well informed, educated decisions on price as interest rates continue to be aggressively added to.”
Ray White South Australia chief auctioneer John Morris said this week proved a standout.
“While the interest rate rise may have caused a momentary lapse in bidder registrations and auction day clearance rates, that seems to have all been forgotten about this week as we enter the weekend with a 100 per cent clearance rate and 8.5 registered bidders per auction,” he said.
“According to the Adelaide Advertiser, we’ve had the strongest quarter in seven years in South Australia.
“There’s a lot of stories of doom and gloom around Australia and New Zealand but we seem to have been completely forgotten about that in Adelaide, and long may it continue.”