Auction volumes rose across the combined capital cities this week, with 2232 homes taken to auction, marking the second highest number of weekly auctions over the year-to-date.
CoreLogic notes the higher volumes returned a preliminary auction clearance rate of 83.2 per cent – slightly below last week’s preliminary figure of 84.5 per cent, which by Wednesday revised down to 80 per cent as final results were collected.
A similar 2274 auctions were held over the same week last year, however close to 20 per cent fewer homes sold (65.3 per cent).
“Across the individual property types, houses have been the standout performer in 2021 so far, with clearance rates above 80 per cent for seven consecutive weeks now, while across the unit market an average of 70 per cent have sold at auction this year,” CoreLogic reported.
In Melbourne, 1094 properties were taken to auction this week, returning a preliminary auction clearance rate of 80.3 per cent.
Last week, a lower 487 homes were auctioned across the city with 75.2 per cent clearing and last year, 1201 auctions were held and a 65.6 per cent clearance rate was achieved.
Sydney returned a preliminary auction clearance rate of 87.4 per cent this week, with 817 properties taken to auction.
Once the auction results are finalised, this is likely to be the sixth consecutive week the city has seen over 80 per cent of auctions successful.
Last week’s final clearance rate came in at 82.9 per cent across a lower 789 auctions.
One year ago, 767 auctions were held and 68.1 per cent sold.
The smaller capitals
Canberra was the best performing of the smaller auction markets with a preliminary auction clearance rate of 95 per cent this week.
Next week, auctions markets are set to be tested across substantially higher volumes, with CoreLogic currently tracking around 2700 scheduled auction events.
Domain’s preliminary clearance rate came in marginally higher than that of CoreLogic, with Domain reporting an 83.5 per cent success rate this weekend after 1903 auctions in the major markets.
So far results are in for 1445 of those auctions, with 1207 properties successfully selling (to the value of $1091 million), while 98 properties were withdrawn.
That volume is of course higher than last week when many states enjoyed a public holiday and 1236 properties were taken to auction, resulting in a final clearance rate of 79.7 per cent.
Results were provided for 1093 of those auctions, with 871 properties successfully selling (to the value of $841.5 million) while 98 properties were withdrawn.
This time in 2020, volume was slightly higher, but the clearance rate was lower. In the same week last year, 1987 properties were taken to auction and the clearance rate was 63.6 per cent.
Results were provided for 1803 of those auctions, with 1147 properties successfully selling (to the value of $1282.7 million), while *140 properties were withdrawn.
*Editor’s note: In the coming weeks last year’s auction results compared to this year’s will highlight the impact of the 2020 lockdowns, which resulted in high withdrawal rates and lowered volumes from mid-March through the following months.
Sydney continues to be the star of the auction show with 716 properties taken to auction this week, resulting in a preliminary clearance rate of 88 per cent.
Results are so far in for 541 of those auctions, with 476 properties successfully selling (to the value of $519.1 million), while 36 properties were withdrawn.
That volume is higher than last week when 667 properties were taken to auction, resulting in a final clearance rate of 83.7 per cent.
Results were provided for 624 of those auctions, with 522 properties successfully selling (to the value of $601.2 million), while 58 properties were withdrawn.
This time last year 650 properties were taken to auction, resulting in a clearance rate of 67.6 per cent.
Results were provided for 587 of those auctions, with 397 properties successfully selling (to the value of $548 million), while 64 properties were withdrawn
Melbourne has returned a preliminary clearance rate of 79.8 per cent after 978 properties were taken to auction this weekend.
That volume is more than twice the numbers seen the week prior when Melbourne enjoyed a public holiday on the Monday.
So far results are in for 756 of those auctions, with 603 properties successfully selling (to the value of $486 million), while 53 properties were withdrawn.
Last week 407 properties were taken to auction and the final clearance rate came in at 70.1 per cent.
Results were provided for 335 of those auctions, with 235 properties successfully selling (to the value of $178.8 million), while 34 properties were withdrawn.
In the same week in 2020, Melbourne’s volume was higher but the clearance rate was lower. This time last year 1147 properties were taken to auction, resulting in a clearance rate of 62.7 per cent.
Results were provided for 1037 of those auctions, with 650 properties successfully selling (to the value of $664.3 million), while 60 properties were withdrawn
Ray White results
Ray White states auctions have become the best placed method of sale to take advantage of the hugely competitive buyer activity across the country, with the market continuing to surge,
Ray White listed more properties in February than the same time in the last two years, noting it’s clear low stock levels are no longer the catalyst for the current intense buyer demand.
“Following a year of reduced activity in the market, pent up demand and fear of missing out (FOMO) has created a perfect storm that continues to build momentum in the market,” they said
With so much competition out there, according to Ray White data, those listings that make it to game day in February sold far more than the highest offer prior.
Those vendors who held out not only saw higher returns on their property but also benefited from the unconditional sale transparency that an auction brings.
Ray White Managing Director Dan White said the most important message that can be communicated to vendors was the value being created by taking properties all the way through to auction day, rather than selling before auction.
“In a month in which 43 per cent of all our sales were made via the auction method, our data shows that our clients achieved prices 12 per cent more on average under the hammer than by accepting the highest offer prior,” Mr White said.
While, 23 per cent of auctions scheduled this Saturday were sold prior, a further 173 proceeded to their date with the gavel across the country, netting an impressive clearance rate of 82 per cent.
Those that went under the hammer sold 12 per cent above the highest offer prior once again on Saturday.
Bidder numbers continued to soar with 6.7 registering to bid while 4.1 actively participated in the bidding. This represents an increase of 3.6 and 2.4 respectively compared to last year.
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro cautioned Sydney sellers to be careful not to get drawn into any hype surrounding property prices.
“We are seeing inflated expectations on top of offers and feedback that is well above previous recorded results but we are still seeing strong bidding activity and solid prices at all Sydney auctions, especially for family homes within a 10km radius from the Sydney CBD,” Mr Pattaro said.
One of Mr Pattaro’s last auctions of the day netted an impressive $1,502,000 under the hammer.
The unrenovated three bedroom 114 Harrow Rd, Bexley home sold for only $48,000 less than the recent private sale of a four bedroom, two bathroom, double garage, fully renovated home three doors up the road.
The Bexley home sold for $202,000 above its reserve with selling agent Nicholas Economos of Ray White Rockdale saying the auction vibe was very competitive.
Ray White Victoria | Tasmania Chief Auctioneer Matthew Condon said it had been another outstanding week of auctions for the state.
“Auction numbers have returned to a normal volume after the long weekend and despite the weather today, buyers are still out in force. It hasn’t changed the crowd size which is quite interesting,” Mr Condon said.
“Again, we are seeing an increased amount of average registered bidders at auction and most noticeable has been the competitive bidding coming from buyers. They are bidding aggressively and in high increments, not $1000 back and forth bids, they are coming out with massive bids.
“Sellers who are choosing to sell in the current market are being rewarded with above reserve prices.”
In Brisbane, Ray White Queensland Chief Auctioneer Mitch Peereboom said it had been another outstanding week of auctions across Queensland.
“We’re seeing excellent competition. We know that buyers are wanting and willing to compete for properties,” Mr Peereboom said.
“They want to get offers in prior to the auction but the key thing to make sure is not to sell prior and to go through to the day, because ultimately for our sellers we want to get the best price and competition is what gets us the best outcome.
“If you look across the group, we’ve had great performances across all different market segments from inner city apartments through to properties between $500,000 and a million dollars right through to multi-million dollar rural sales, one selling for $8,770,000 this week.”
In Adelaide, Ray White SA Chief Auctioneer John Morris said non-traditional auction days were beginning to attract increasing interest.
“I am loving the fact that agents are embracing non-traditional auction days, such as Wednesdays, Thursdays and Fridays and also the fact that there are more and more embracing the in-room events.
“Over the last few weeks, the non-traditional days have actually outstripped the Saturdays.
“I think this is only going to continue growing throughout South Australia as agents get busier and busier.
“Results last week were great, 10 registered bidders, on average, and while the clearance rates dropped down to about 70 per cent, I think that that was something to do with the vendors expectations becoming over increased by the stories throughout the state.
“But I think that there will be adjustments coming in the next few weeks and months.”