The preliminary auction clearance rate has risen to 76.4 per cent this week, with volumes remaining relatively steady despite a 17 per cent drop in the number of predicted auctions in Sydney.
CoreLogic notes there were 2121 capital city homes taken to auction over the week, compared to 2168 the week prior.
This week’s preliminary clearance rate is higher than last week’s when a preliminary figure of 73.6 per cent was returned.
That later revised down to 72.1 per cent by final collection on Wednesday.
In Melbourne, 1077 homes were auctioned this week, returning a preliminary auction clearance rate of 75.3 per cent.
Last week, 1073 auctions were held across the city with a final auction clearance rate of 73.1 per cent, while one year ago, 506 Melbourne homes were auctioned with a success rate of 51.2 per cent.
Sydney saw 661 properties taken to auction This was down 17 per cent from the initial predicted count as the city remained in lockdown, seeing many auctions rescheduled to a later date.
Of the 567 results collected so far, 76.5 per cent reportedly sold and 19 per cent have been withdrawn.
Of the 434 sold results, 70.7 per cent sold prior to the scheduled auction date.
Last week, 756 Sydney homes were auctioned with a final clearance rate of 70.5 per cent.
Both the withdrawal rate and proportion of auctions ‘sold prior’ were well above average across Sydney as vendors altered their selling strategies amidst the extended lockdown.
The smaller capitals
Canberra was once again the best performing capital city auction market this week with a preliminary auction clearance rate of 90 per cent.
Brisbane was the busiest of the smaller capital cities with 162 auctions held and a preliminary clearance rate of 75.8 per cent.
Domain has reported a preliminary clearance rate of 76 per cent after 2009 properties were listed for auction this weekend.
So far, results are in for 1371 of those auctions, with 1042 properties selling (to the value of $858.4 million), while 197 properties were withdrawn.
Last week, the clearance rate settled at 69.2 per cent after 1875 properties went to auction.
Results were provided for 1555 of those auctions with 1076 properties selling (to the value of $857.9 million), while 249 properties were withdrawn.
This time last year, the national clearance rate was 52.9 per cent after 935 properties were taken to auction.
Results were provided for 884 of those auctions, with 468 properties selling (to the value of $500.9 million), while 240 properties were withdrawn.
Sydney’s preliminary clearance rate is sitting at 73.9 per cent after 782 properties were taken to auction this weekend.
So far, results are in for 487 of those auctions, with 360 properties selling (to the value of $346.7 million), while 108 properties were withdrawn.
Last week, Sydney’s clearance rate settled at 69.2 per cent after 796 properties were taken to auction.
Results were provided for 581 of those auctions, with 402 properties selling (to the value of $374.6 million), while 146 properties were withdrawn.
This time last year, Sydney’s clearance rate was 60.5 per cent after 449 properties were taken to auction.
Results were provided for 395 of those auctions, with 239 properties selling (to the value of $318.5 million), while 67 properties were withdrawn.
Melbourne enjoyed a preliminary clearance rate of 76.4 per cent after 977 properties were taken to auction this weekend.
So far, results are in for 720 of those auctions with 550 properties selling (to the value of $421.8 million), while 70 properties were withdrawn.
Last week, Melbourne’s clearance rate was 70.2 per cent after 854 properties were taken to auction. Results were provided for 781 of those auctions, with 548 properties selling (to the value of $404.2 million), while 79 properties were withdrawn.
This time last year, Melbourne’s clearance rate was a meagre 45.4 per cent on the back of 383 properties taken to auction.
Results were provided for all 383 of those auctions with 174 properties selling (to the value of $143.7 million), while 159 properties were withdrawn.
Ray White results
The Ray White Group reported buyers across the country braved the winter chill and came in out force on Saturday, vying for their next home and bidding strongly.
The group recorded a preliminary clearance rate of 78 per cent with the standout city Adelaide, coming in at 100 per cent.
The gap between auction sale price and highest previous offer is now at record highs, they noted.
Ray White Chief Economist Nerida Conisbee explained the gap between auction sale price and highest prior offer over the past 18 months of more than 9500 auctions suggested it was never a good idea to sell prior.
“It is particularly not a good idea now where the gap is currently at a record high of 13.1 per cent. The gap is currently highest in Perth, not surprising given how quick the market is now moving in that city,” Ms Conisbee said.
After a tumultuous week with our capital cities coming in and out of lockdowns, agents had to quickly adapt to ensure their auctions still went ahead to achieve a premium result for sellers.
New South Wales
As Sydney entered its third week of lockdown, the online auction trend continued to grow. Sellers who chose to forge ahead with their auctions in a virtual format instead of selling prior, were rewarded with fierce bidding soaring past reserves.
Ray White New South Wales Chief Auctioneer, Alex Pattaro said the city saw another strong weekend of clearance rates and a high number of registered and active bidders.
“If you think the COVID restrictions were getting in the way, think again,” Mr Pattaro said.
“It is our suggestion that with the low stock volume, if you are thinking about waiting then our suggestion is to come to market now,” he said.
“Those who come to market sooner rather than later will be rewarded, as opposed to waiting until lockdowns lift where there will be more competition on the market.”
In a turn of events for Melbournites who experienced a relatively normal Saturday, Ray White Victoria/Tasmania Chief Auctioneer Matt Condon said excitement was in the air across the city.
“It turned into a beautiful day in Melbourne, with healthy crowd sizes at all of the auctions,” Mr Condon said.
“It really feels like the auction atmosphere has returned to the city, with noticeable bidding activity.
“We have seen a significant increase in scheduled auctions, and that increased supply was met with an even higher level of demand from buyers.
“Even with higher aggressive bidding at the start, there was still a healthy amount of competition with subsequent bids,” Mr Condon said.
In the Sunshine State, Brisbane residents donned their masks and came out in force after being released from last week’s lockdown.
Ray White Queensland Chief Auctioneer Gavin Croft said crowd numbers were significant on Saturday, even in the cold and windy weather in Brisbane.
“All four of the properties I auctioned today sold under the hammer, and every property had at least 100 people in attendance, of course masked up and socially distanced,” Mr Croft said.
South Australia experienced yet another week of incredible results, with Ray White South Australia/ Northern Territory Chief Auctioneer John Morris putting it down to massive bidder numbers.
“Many agents are turning to in-room and midweek auctions with the weekends quickly booking out,” Mr Morris said.
“We had a whopping 12 registered bidders per auction, with lots of properties going under the hammer and selling around the whole state.”