Auction markets have returned a strong result on higher volumes this week, with the combined preliminary clearance rate holding above 80 per cent, and Sydney clocking up almost a 90 per cent success rate.
Every capital city recorded a clearance rate above 70 per cent as volumes continued to surge higher after the festive period slowdown.
CoreLogic notes there were 1287 homes taken to auction across the combined capital cities this week, returning a preliminary auction clearance rate of 83.8 per cent – an improvement on the 81.1 per cent preliminary result last week when a lower 884 auctions took place.
Last week’s clearance rate revised down to 77.2 per cent by final figures on Wednesday, and it’s likely this week’s result may come in above this given the higher preliminary figure.
Over the same week last year, auction volumes were lower with 1167 homes going under the hammer across the combined capital cities, returning a final auction clearance rate of just 67.7 per cent.
In Melbourne, a preliminary auction clearance rate of 80.8 per cent was recorded across 592 auctions this week, while last week there were 390 auctions returning a final clearance rate of 80 per cent.
One year ago, the clearance rate was just 68.5 per cent across 419 auctions.
There were 449 auctions held in Sydney this week, returning a preliminary clearance rate of 89.1 per cet.
In comparison, there were 270 auctions held over the previous week and the final auction clearance rate was 76.7 per cent.
One year ago, 384 auctions were held across the city and the clearance rate came in at 77.6 per cent.
The smaller markets
Across the smaller auction markets, Canberra returned the highest preliminary clearance rate of 92.7 per cent, followed by Adelaide (82.8 per cent), Perth (75 per cent) and Brisbane (74.6 per cent).
“Such strong auction results signal further upwards pressure on housing prices amidst extremely tight advertised supply levels and above average buyer demand,” CoreLogic noted.
Domain also reported a national clearance rate above 80 per cent this week, with 1073 properties taken to auction in the major capitals.
Their data indicates results are in for 769 of those auctions, with 628 properties selling successfully (to the value of $524.4 million), while just 45 properties were withdrawn.
This volume is a significant increase on last week when just 693 properties went to auction, returning a final clearance rate of 76 per cent.
Results were provided for 651 of those auctions, with 495 properties successfully selling (to the value of $389.3 million), while 27 properties were withdrawn.
This time last year, volume was lower, with 990 auctions occurring, resulting in a 69.5 per cent success rate.
Of the 902 results provided, 627 properties were successfully sold (to the value of $628.9 million), while 53 properties were withdrawn.
Sydney was the standout performer in the auction arena this week, clocking up an 88.7 per cent success rate on the back of 408 properties taken to auction.
Results are so far in for 293 of those auctions, with 260 properties successfully selling (to the value of $256.6 million), while 18 properties were withdrawn.
Last week, Sydney’s volume was lower but the clearance rate remained strong, with 251 properties taken to auction and a success rate of 78.3 per cent.
Results were provided for 240 of those auctions, with 188 properties successfully selling (to the value of $177.6 million), while 11 properties were withdrawn.
This time last year, Sydney’s clearance rate sat at 76.9 per cent on the back of 402 properties taken to auction. Results were provided for 377 of those auctions, with 290 properties successfully sold (to the value of $3456 million), while 22 properties were withdrawn.
Sydney might have been the standout but Melbourne was in fine form too, with 523 properties taken to auction and a preliminary clearance rate this week of 78.4 per cent.
So far, results have been provided for 393 of those auctions, with 308 properties successfully selling (o the value of $232.7 million), while 24 properties were withdrawn.
Last week, Melbourne had 309 properties taken to auction and returned a success rate of 78.7 per cent.
Results were provided for 291 of those auctions with 229 properties successfully selling (to the value of $173.4 million), while 11 properties were withdrawn.
This time last year, both Melbourne’s clearance rate and volume were lower, with 403 properties taken to auction and a clearance rate of 67.1 per cent.
Results were provided for 359 of those auctions, with 241 properties successfully selling (to the value of $205.6 million), while 15 properties were withdrawn.
Ray White results
Ray White noted buyer demand is proving unstoppable and is only set to become more competitive as the low stock levels of last year continue well into 2021.
Average registered bidders are at their highest since July 2018 while scheduled auctions are way down at the lowest since July 2020, according to Ray White data.
Listings on the market are also down by 27 per cent compared to this time in 2019.
Low levels of stock sent buyers into a frenzy this weekend. They note sellers who take the plunge and list now are reaping the rewards as multiple buyers compete to secure the coveted Great Australian Dream of owning their own home.
Saturday’s auctions continued to evidence this as the Ray White Group recorded a 84 per cent clearance rate with 6.5 average registered bidders across the country.
Throughout the week, the leading auction house booked an 82 per cent auction day clearance rate. February is on track to be another outstanding month for the Ray White Group with 2220 auctions scheduled for the month – an increase of 21 per cent on this time last year.
These figures carry over from last week where properties sold at auction just over five per cent above reserve prices and more than 11 per cent over the highest offer prior.
“Clearly, buyers mean business and have come prepared to compete for their dream home despite some stiff competition,” they note.
New South Wales
In Sydney, Ray White New South Wales Chief Auctioneer Alex Pattaro said as auction volume continues to gain momentum, buyers within the market were certainly quick to follow.
“The confidence within the market is next level, giving sellers confidence of obtaining their dream price,” Mr Pattaro said.
“The apartment market is shining brighter than some recent reports suggest with many agents reporting 50 plus attendees at open homes.
“Houses and apartments that are priced in line with the market are obtaining enormous activity and some great prices.”
Ray White Victoria Chief Auctioneer Matthew Condon said February was off to a great start with the state’s real estate market continuing to go from strength to strength.
“The shortage of properties available and the high level of buyer demand continues to create conditions that are conducive towards sellers getting a premium price,” Mr Condon said.
“Based on preliminary data from the Ray White Group, we are continuing to see a rise in the amount of active and registered bidders at each auction.
“Properties under $1 million continue to see results with a high number of first home buyers still very active in the market.”
Ray White Queensland Chief Auctioneer Mitch Peereboom said Saturday was a remarkable day for Ray White Queensland with a number of properties selling under the hammer.
“It’s been an excellent week of auctions across the group. We’re seeing that average number of registered bidders are certainly consistent with the end of last year, if not improving throughout the month of January, into February,” Mr Peereboom said
“If you look at the sale prices, we are seeing them get to levels that have exceeded the expectations of owners. Certainly, buyer demand has not wavered, it’s continued from what it was at the end of last year.
“All signs at the start of February point towards the market not slowing down whatsoever.”
Ray White South Australia Chief Auctioneer John Morris said the state is reporting a preliminary clearance rate of 93 per cent and above.
“Every single auction has had bidding, bidder registrations are averaging at 8.8 per cent per auction. It’s looking like it’s going to be a very similar repeat of last week,” Mr Morris said.
“The weekend has seen 65 auctions throughout SA with 37 per cent of those being Ray White, that equates to 57 per cent next week.
“The wild weather has not kept the buyers away but it has kept those yellow flags flying at auctions across the state this weekend.”
In WA, Ray White Applecross agent Noel Rogers sold 16 Russell St, Fremantle for $1,585,000 to a couple downsizing from regional WA.
Mr Rogers said the sale shows a total resurgence of the Fremantle market itself and huge buyer demand.
“It definitely demonstrates some substantial growth in the area over the last three to six months,” Mr Rogers said.
“And we are actually finding that this is giving sellers a lot of confidence coming out and offering their properties on an off-market type of sale. Then very quickly we find they convert the sale to an auction process because they begin to realise that will give them the best outcome.”