Auction volumes remain high with 3276 homes taken to auction across the combined capitals this week, resulting in a preliminary clearance rate of 76.1 per cent.
CoreLogic has reported that continued high volume has led to a steady decline in the clearance rate over recent weeks, with the success rate trending lower since its peak of 83.2 per cent on the week ending 3 October.
Last week’s preliminary clearance rate for 3546 auctions was 78.9 per cent, but revised down to 76.8 per cent at final figures.
This time last year 69 per cent of the 1757 auctions held were successful.
In Melbourne, 1395 homes were taken to auction this week, down from 1752 auctions held in the previous week but up from the 611 auctions that occurred this time last year.
With 1127 results recorded so far, Melbourne reported its lowest preliminary clearance rate since mid-September, with just 72 per cent of auctions recording a successful result.
The previous week reported a preliminary clearance rate of 77.4 per cent, which revised down to 75.2 per cent at final figures.
This time last year, 68 per cent of auctions were successful.
Sydney had its busiest auction week since March and its second busiest of the year with 1228 homes going to auction this week.
The previous week saw 1151 homes taken to auction, while this time last year 851 auctions occurred.
With 1046 results recorded so far, Sydney recorded a preliminary clearance rate of 75.9 per cent.
The previous week saw a preliminary clearance rate of 79.3 per cent, which revised down to 76.6 per cent at final figures, while this time last year 73.3 per cent of reported auctions were successful.
“Since restrictions lifted across Sydney on the 11 October, Sydney’s weekly auction volumes have increased by nearly 50 per cent,” CoreLogic noted.
“Over the same period, clearance rates have steadily declined, and the withdrawal rate has risen.
“As pent up supply continues to flow to the market these metrics will likely continue to decline.”
The smaller capitals
Across the smaller auction markets, Canberra recorded the highest preliminary clearance rate at 91.4 per cent, followed by Adelaide (85.8 per cent) and Brisbane (84.7 per cent).
Perth recorded a preliminary clearance rate of 50 per cent with just eight of the 16 results collected so far reporting a successful result.
Of the five auctions scheduled to be held across Tasmania this week, four results have been collected, three of which were successful
Domain has reported a national preliminary clearance rate of 74.7 per cent after tracking 2463 auctions this week.
So far results are in for 1744 of those auctions, with 1303 properties selling (to the value of $1157.8 million), while 242 properties were withdrawn.
Last week’s clearance rate settled at 73.4 per cent after 2422 properties were taken to auction.
Results were provided for 2168 of those auctions, with 1592 properties selling (to the value of $1431.6 million), while 254 properties were withdrawn.
This time last year, the clearance rate was 68.6 per cent after 1400 properties were taken to auction.
Results were provided for 1323 of those auctions, with 908 properties selling (to the value of $1198.4 million), while 159 properties were withdrawn.
Sydney’s preliminary clearance rate is 75.4 per cent after 994 properties were taken to auction this week.
So far results are in for 708 of those auctions, with 534 properties selling (to the value of $551.1 million), while 113 properties were withdrawn.
Last week, Sydney’s final clearance rate settled at 74.8 per cent after 887 properties were taken to auction.
Results were provided for 775 of those auctions, with 580 properties selling (to the value of $660 million), while 95 properties were withdrawn.
This time last year, Sydney’s clearance rate was 72.8 per cent after 761 properties were taken to auction.
Results were provided for 706 of those auctions, with 514 properties selling (to the value of $818.4 million), while 93 properties were withdrawn.
Melbourne returned a preliminary clearance rate of 71.1 per cent this week, after 1095 properties were taken to auction.
So far, results have been provided for 812 of those auctions, with 577 properties selling (to the value of $465 million), while 113 properties were withdrawn.
Last week, Melbourne’s final clearance rate was 72.4 per cent after 1191 properties were taken to auction.
Results were provided for 1068 of those auctions, with 773 properties selling (to the value of $599.5 million), while 127 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 63.9 per cent after 456 properties were taken to auction.
Results were provided for 438 of those auctions, with 280 properties selling (to the value of $279.9 million), while 54 properties were withdrawn.
Ray White results
The Ray White Group reported the first weekend of November not only delivered some stellar sales but also saw an increase in auction volume across the country.
In line with Ray White data that shows listings on the market are up 18 per cent in just a month, on Saturday there were 413 auctions scheduled.
This was the first time the group cracked the four hundreds figure on a Saturday in several months.
“There may be more options for buyers but that didn’t stop them from competing fiercely today with an average of seven registered bidders and 3.7 active bidders per auction nationally,” the group noted.
Ray White’s clearance rate came in at 86 per cent while the gap between the highest offer prior and the sale price at auction was on average an impressive 11.13 per cent.
New South Wales
Ray White New South Wales chief auctioneer Alex Pattaro said Saturday’s market had the best selling conditions the state had ever seen.
“Prices at auctions are at a high but we do warn sellers about having unrealistic price expectations as the Sydney market continues to run hot,” Mr Pattaro said.
“With more stock on the market buyers have become picky and cautious about overpaying.
“If properties are passing in within this market then nine times out of 10, it’s price related.”
Ray White Victoria chief auctioneer Matthew Condon said the state’s auction and real estate market continued to go from strength to strength.
“The first weekend in November saw a higher than normal volume of auctions, which was met with equal demand from buyers,” Mr Condon said.
“We are seeing more and more auctions returning on-site with the warm weather creating a very healthy attendance of neighbours, spectators and buyers alike.
“It is also great to see that Ray White agents are utilising technology on-site and allowing buyers to bid online if that is their preference.
“Overall, we’re expecting to see these strong results in activity continue for the remainder of 2021.”
In Brisbane, Ray White Queensland chief auctioneer Gavin Croft said the network was off and racing at the start of the week, which began with the race that stopped the nation.
“The lead up to Saturdays are always interesting to see what unfolds, as we generally find the in-room auction events we hold during the week will flow on to Saturday,” Mr Croft said.
“On Tuesday night, following the Melbourne Cup, it looked like some people had won big at the races because bidding was particularly strong for the Ray White Upper Coomera auction event with a 100 per cent clearance rate.
“As we come into Saturday, again it’s great to report a 100 per cent clearance rate personally.
“The interesting thing we continue to see is the speed of bidding now – buyers are coming more prepared than they ever have at Brisbane auctions.”
Ray White South Australia chief auctioneer John Morris said if Adelaide was once a ‘sleepy town in which auctions didn’t work’, that is all completely and utterly changed in 2021.
“Of the 4500 properties that are currently listed throughout the state 12.5 per cent of them are for auction which is unprecedented,” Mr Morris said.
“If October was a good month for auctions for Ray White, then November is looking as though it is going to eclipse that, if this first week is anything to go by.
“So as I said before, if Adelaide was a sleepy, old town, that sleeping giant has well and truly woken up and everybody has embraced that auction method as the preferred method of sale.”