Sydney led the charge as the auction market recorded its strongest preliminary clearance rate since late May, with 1883 properties going under the hammer across the combined capitals.
Despite activity falling 2 per cent compared to last week, 63.7 per cent of the 1468 results collected so far were successful.
The previous week saw 1921 homes go under the hammer, while this time last year, auction activity was significantly stronger, with 3292 homes auctioned across the capitals.
CoreLogic said this week’s preliminary clearance rate is 3.8 percentage points above last week’s preliminary rate of 59.8 per cent, which revised to 58.8 per cent at final figures.
However, it is approximately 10 percentage points below the rate recorded this time last year when 73.per cent of auctions were successful.
Sydney hosted 701 auctions this week – down 6.7 per cent from last week, when 751 homes were auctioned.
With 580 results collected so far, Sydney recorded its highest preliminary clearance rate since mid-April, with 69.7 per cent of auctions returning a successful result.
This week’s result is 7.3 percentage points above last week’s preliminary clearance rate of 62.3 per cent, which revised to 61 per cent at final numbers.
CoreLogic said the rise in Sydney’s preliminary clearance rate saw the withdrawal rate at 15.5 per cent, which is the lowest it has been since mid-April.
This week also saw the portion of properties passed in at auction (14.8 per cent) fall to its lowest rate since mid-February (14.2 per cent).
This time last year, 74.1 per cent of the 1239 auctions held across Sydney reported a successful result.
Melbourne hosted the busiest auction week, with 764 homes taken to auction across the city this week.
The start of the Melbourne Cup carnival saw just 602 homes auctioned last week, while 1398 homes went under the hammer this time last year.
With 627 auction results collected so far, Melbourne’s preliminary clearance rate rose 1.2 percentage points to 61.9 per cent.
The previous week resulted in a preliminary clearance rate of 60.7 per cent, which later revised to 60.9 per cent at final numbers, while 67.7 per cent of auctions held this time last year were successful.
The smaller capitals
Across the smaller capitals, Brisbane (-40.7 per cent), Canberra (-29.6 per cent), and Perth (-41.4 per cent) saw weekly auction numbers fall this week, while Adelaide recorded a slight rise in auction activity (+0.6 per cent).
Adelaide hosted the busiest week amongst the smaller capitals, with 156 homes auctioned, followed by Brisbane (131) and Canberra (114).
Adelaide recorded the lowest preliminary clearance rate since early August, with 66.3 per cent of auctions reporting a successful result, while Canberra’s and Brisbane’s preliminary clearance rates came in at 60.9 per cent and 43.0 per cent, respectively.
In Perth, results for 10 auctions have been collected so far, and half have returned a successful result.
No auctions were held in Tasmania this week.
Domain has reported a preliminary clearance rate of 62.7 per cent after tracking 1596 auctions across the major capitals.
So far, results are in for 1110 of those auctions, with 696 properties selling (to the value of $613.2 million), while 172 properties were withdrawn.
Last week, the final clearance rate settled at 59 per cent after 1434 properties were taken to auction.
Results were provided for 1228 of those auctions, with 725 properties selling (to the value of $617 million), while 165 properties were withdrawn.
This time last year, auction volumes were higher as was the clearance rate, with 2378 properties going to auction in the same week, resulting in a clearance rate of 70.1 per cent.
Results were provided for 2244 of those auctions, with 1573 properties selling (to the value of $2395.8 million) while 271 properties were withdrawn.
Sydney’s clearance rate increased this week, with 635 auctions resulting in a preliminary success rate of 66.8 per cent.
So far, results are in for 422 of those auctions, with 282 properties selling (to the value of $298.6 million), while 88 properties were withdrawn.
Last week, Sydney’s final clearance rate was 59.4 per cent after 615 properties went to auction.
Results were provided for 529 of those auctions, with 314 properties selling (to the value of $330.2 million), while 102 properties were withdrawn.
This time last year, Sydney’s clearance rate was 71.7 per cent after 960 properties went to auction.
Results were provided for 894 of those auctions, with 641 properties selling (to the value of $1328.6 million), while 114 properties were withdrawn.
In Melbourne, 672 properties went to auction this week, resulting in a preliminary clearance rate of 61.1 per cent.
So far, results are in for 511 of those auctions, with 312 properties selling (to the value of $234.7 million), while 59 properties were withdrawn.
Last week, Melbourne returned a final success rate of 59.6 per cent after 484 properties went to auction.
Results were provided for 411 of those auctions, with 245 properties selling (to the value of $173.5 million), while 46 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 66.3 per cent after 1050 properties went to auction.
Results were provided for 986 of those auctions, with 654 properties selling (to the value of $783.8 million), while 133 properties were withdrawn.
Ray White results
The Ray White group enjoyed a bump in bidder numbers across the country on Saturday, with 3.6 average registered bidders competing for its 350 auction properties across Australia.
The group reported a 67 per cent preliminary auction day clearance rate, with 2.4 average active bidders nationally.
Meanwhile, Ray White data showed the average number of bidders at auction hit 3.7 by the end of October – the highest figure in the past year.
Ray White NSW Chief Auctioneer Alex Pattaro said the first weekend in November continued the similar trend as seen throughout October.
“Bidding activity remains up compared to levels we saw earlier in the year and the buyer behaviour has really bounced back,” he said.
“The feeling is Sydney has moved more into a balanced market but we are consistently seeing clearance rates around 60 per cent, making it a great time for buyers and sellers to transact.
“We must be reminded that a clearance rate of 60 per cent is a normal market and auction remains the best method to sell to create competition as it provides sellers and buyers with a better understanding on where the market is positioned at.”
Ray White Queensland Chief Auctioneer Gavin Croft said there were 122 scheduled auctions last week, and this week only 50.
“It certainly isn’t a traditional spring market. There’s more stock coming on later in the year that perhaps we wouldn’t normally see,” he said.
“Each week I see the agents who have refined their craft in the auction space with good quality process and execution and results.
“For me these are currently some of the most effective and efficient agents for vendors across the state.
“I think on average, we were looking at days on market at 25 per cent less than a year ago, which is good for sellers who choose to auction in southeast Queensland.
“In some areas of the state where auctions absolutely dominate we’re seeing days on market reduced by up to 200 per cent.
“That’s an extraordinary statistic and a rewarding one for home sellers who have achieved a premium result via auction.
“With shorter volume today, it will be interesting to see how it plays a role with the clearance rate. They’ve been hovering anywhere between 40 – 60 per cent.”
Ray White Victoria Chief Auctioneer Matt Condon said the amazing Melbourne weather and large crowd sizes created a great auction day atmosphere on Saturday.
“This week has seen a slight decline in auction volume across the state with just over 150 auctions scheduled for Ray White Victoria,” he said.
“Over the past couple of weeks we have seen an increase in the number of properties launching to market with many sellers choosing to schedule their auction prior to the festive season.
“This has provided buyers with more preliminary data from the Ray White Group revealing a slight drop in the average number of active bidders per auction.
“However, it is important to note that when sellers are priced in line with market expectations, these properties are continuing to receive more inspections, bidders and ultimately a better result on auction day.
“With more stock now available to meet the buyer demand, we are certainly experiencing plenty of auction action to finish the year strong.”
Ray White South Australia Chief Auctioneer John Morris said Adelaide might have a shortage of champagne coming up if this auction streak does not stop soon.
“We have a preliminary clearance rate of 74 per cent.
“Today saw 5.5 registered bidders with three of those active.
“That has stayed consistent throughout the financial year and calendar year and I don’t think we’ve been below 70 per cent on a week for a long, long time,” he said.