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Preliminary clearance rate improves while fewer homes taken to auction

As is traditionally the case, school holidays had a direct impact on auction volumes this week across the capitals, with a total of 1185 homes scheduled for auction compared to 1485 last week.

While volumes were lower, the clearance rate trended higher, according to CoreLogic figures, which indicated a preliminary sale rate of 65.1 per cent.

“This was higher than last week’s preliminary figure of 64.5 per cent across a higher 1485 auctions, which later revised down to 60.6 per cent at final collection,” CoreLogic said.

In positive news, the volume was also healthier than the same time last year. CoreLogic reported the first week of July in 2019 saw 953 homes taken to auction with a success rate of 64 per cent.

Melbourne

In Melbourne the lockdown of 10 postcodes due to a surge in Covid-19 cases did little to dampen the buying spirit. Despite lower volumes, the clearance trended higher.

“There were 439 Melbourne homes taken to auction at the weekend returning a preliminary clearance rate of 64.3 per cent, which was higher than last week’s preliminary figure of 62.7 per cent across 645 auctions,” CoreLogic stated.

Last week’s final clearance rate later revised to a final result of 61 per cent.

Sydney

In Sydney, 563 homes were auctioned this week returning a preliminary clearance rate of 68.1 per cent, higher than last week’s 66.9 per cent preliminary result, when a higher number of auctions were held (644).

The final clearance rate last week came in at 62.9 per cent.

The smaller capitals

Across the smaller cities, Canberra continued to outperform in terms of success rate across the capital city markets with an 81.6 per cent preliminary clearance rate this week.

However, this was down on the final clearance rate last week when 84.4 per cent of homes were successful at auction across Canberra.

Perth, where only a small proportion of properties are auctioned, continues to return one of the lowest clearance rates across the capital cities with only 22 per cent of auctions clearing this week.

Domain results

Domain also reported a high clearance rate on the back of lower volumes, this week recording a 64 per cent preliminary success rate off the back of 940 scheduled auctions.

These results were derived from 598 reported auctions, 452 sales (valued at a total of $334.8 million) and 108 withdrawals.

Compared to last week, volume was slightly down, but was far better than the same time last year.

Last week, 1151 properties were listed for auction, 897 results were reported, 609 sales were made (valued collectively at $421.5 million) and 153 properties were withdrawn for a final clearance rate of 58 per cent.

This time last year, 786 properties were listed for auction, 621 results were reported, 428 sales were made (valued at $418.1 million), and just 60 properties were withdrawn for a clearance rate of 62.8 per cent.

Melbourne

This week Melbourne saw the greatest reduction in volumes, with just 373 properties listed for auction. Of those, 235 results were reported, 171 sales were made (valued at $111 million) and 40 properties were withdrawn for a preliminary clearance rate of 62.2 per cent.

Last week, 528 properties were listed for auction, 442 results were reported, 279 sales were made (valued at $183.1 million) and 51 properties were withdrawn for a final clearance rate of 56.6 per cent.

In the same week last year, 361 properties were listed for auction, 281 results were reported, 200 properties were sold (valued at $159.6 million) and 16 properties were withdrawn, resulting in a clearance rate of 67.3 per cent.

Sydney

The school holidays only impacted Sydney’s volumes marginally, with 470 properties listed for auction this week, compared to 529 the week prior.

Of those 470 properties, 310 results were reported, 243 sales were made (valued at $201.1 million) and 59 properties were withdrawn for a preliminary clearance rate of 65.9 per cent.

Last week the 529 properties listed saw 377 results reported, 276 sales made (valued at $212.4 million) and 90 properties withdrawn for a final clearance rate of 59.1 per cent.

This time last year, 288 properties were listed for auction, 226 results were reported, 175 sales were made (valued at $220 million) and 31 properties were withdrawn for a clearance rate of 68.1 per cent.

Ray White results

Ray White’s strong June sales continued into the new financial year this weekend with the brand reporting outstanding results in what remained very much a seller’s market.

The Ray White Group booked a preliminary clearance rate of 61 per cent during a week when they enjoyed an auction market share of 31 per cent.

Ray White Group Managing Director Dan White said auction results for the first week of July rewarded customers that decided not to wait for spring.

“Not only was average registered bidder numbers at 4.2, but the national auction day clearance rate today of 61 per cent is far stronger than last year,” Mr White said.

“It was also on the back of a seven per cent increase in the number of auctions scheduled this week, and a 30 per cent increase for July 2020.

“With strong buyer activity and less properties on the market for them to choose from than this time last year, we continue to ask the question, ‘Why would you wait until spring to sell?’

“July has started with some exciting momentum, on the back of very strong June figures.

“Our residential Australian sales in June were up six per cent on last year, at $2.4 billion. NSW alone was up 15 per cent. Together with our New Zealand, commercial and rural networks, our June sales were up eight per cent at $3.7 billion.

“Re-imposed restrictions in Melbourne didn’t dampen activity either. Results were consistent with recent weeks, as our members and the community are now very comfortable with online auctions, and confident they can produce great results.”

New South Wales

Ray White NSW Chief Auctioneer Alex Pattaro said campaigns across the last week had seen seven out of 10 properties sell.

“Based on all the evidence, the competition across properties is red hot and the market continues to grow in confidence,” Mr Pattaro said.

“Good properties in desirable locations within a 15km radius from Sydney are all seeing strong attendance at open homes and competition at auction.

“We’re currently in a market where buyers need to see competition for sellers to obtain a maximum price, and auction is the only method of sale that allows this to occur in an open and transparent forum.

“If you are considering selling and wanting maximum price, then auction must be your preferred method of sale.”

Victoria

Ray White Victoria and Tasmania Chief Auctioneer Matt Condon said a large number of auctions converted to online once restrictions were announced for 10 post codes.

“This raised a lot of questions around how properties located within and on the fringe of these hotspots would perform,” Mr Condon said.

“Based on preliminary data from the Ray White Group, it’s great to be able to report that the properties auctioned within these locations performed exceptionally well, with a number of them selling well above reserve price.

“This just goes to show the confidence that buyers have in Victoria’s real estate market, but also buyers willing to embrace technology and bid online for their desired property.

“Overall, Ray White Victoria has seen a spike in registered bidders, an increase in active bidders, and our data is trending towards a strong clearance rate this week.”

Queensland

Ray White QLD Chief Auctioneer Mitch Peereboom said it had been yet another outstanding week of auctions in the Sunshine State.

“We’ve seen strong bidding throughout many auctions this week, and certainly all different market segments are performing well. We saw some great unit sales in the Brisbane City and West End areas in particular,” Mr Peereboom said.

“The average number of registered bidders is up from this time last week. The buyers are willing to compete, and they know by seeing the social proof of watching other buyers there, they are paying market value.

“We’re thrilled with the sale prices. If you are thinking about what is happening in the market, go and chat to your local Ray White agent, because we’re so confident that now is the time to sell.”

South Australia

Ray White SA Chief Auctioneer John Morris said 58 per cent of all auctions conducted this weekend were done so by the family-owned and led company.

“It’s been a massive few months in SA for Ray White auctioneers who have consistently maintained a more than 50 per cent auction market share,” Mr Morris said.

“We’re now coming off the back of a week that saw an 89 per cent auction day clearance rate thanks to a whopping average of 7.4 bidders per auction.

“Every single auction during the week had bidding action take place.”

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