NationalReal Estate Industry News

Preliminary clearance rate tops 80 per cent on the back of higher volume

The combined capital city preliminary clearance rate has risen to 80.5 per cent this week after volume bounced back from the Easter slowdown.

CoreLogic reported 2448 homes were taken to auction this week. Over the week prior, a lower 2199 auctions were held with preliminary figures showing 79.4 per cent of homes sold. That success rate later revised down to 76.8 per cent by final collection of figures on Wednesday.

In the same week last year, confidence was low due to restrictions around onsite auctions and physical home inspections, with only 30 per cent of homes sold over the week across 1922 auctions.

Melbourne

In Melbourne, 1204 homes were taken to auction across the city over the week, returning a preliminary auction clearance rate of 78.1 per cent.

This was higher than last week’s preliminary figure of 77.2 per cent, which later revised down to 72.5 per cent. It was also higher than last year’s figure of 27.9 per cent.

Last week, 1059 auctions were held and last year 1016 auctions took place.

Sydney

Sydney returned a preliminary auction clearance rate of 84.8 per cent this week as volumes increased. There were 913 auctions held over the week – up on last week’s 821 and also higher than last year’s 735 auctions.

This week’s preliminary figure is higher than the 82.8 per cent recorded last week, which revised down to 81.4 per cent at final figures. One year ago, only 33.3 per cent of homes sold across the city.

The smaller capitals

Across the smaller cities, Canberra continued its strong performance, with 87.4 per cent of homes selling at auction this week – the highest of the capital cities.

Following, with 82.8 per cent of auctions successful, was Adelaide, Brisbane (72.7 per cent) and then Perth (50 per cent).

Domain results

Domain’s preliminary clearance rate was marginally lower than CoreLogic’s, with 2053 auctions resulting in a success rate of 79.4 per cent.

Of the 1550 results provided so far, 1230 properties sold (to the value of $1108.1 million), while 129 properties were withdrawn.

Last week 1913 properties were taken to auction resulting in a final clearance rate of 75.5 per cent. Results were provided for 1756 of those auctions, with 1325 properties selling (to the value of $1151.6 million), while 187 properties were withdrawn.

This time last year, the impact of the COVID lockdown was evident, with 1664 properties taken to auction and a clearance rate of 32.3 per cent.

Results were provided for 1525 of those auctions, with only 492 properties selling (to the value of $430.7 million), while 876 properties were withdrawn.

Sydney

Sydney again proved the standout performer, with 785 auctions scheduled this week, resulting in a preliminary clearance rate of 84.8 per cent.

So far, results are in for 584 of those auctions, with 495 properties selling (to the value of $528.8 million), while 45 properties were withdrawn.

Last week, Sydney’s volume was similar, but the clearance rate was slightly lower. Last week saw 789 properties taken to auction and a final clearance rate of 79.7 per cent.

Results were provided for 738 of those auctions, with 588 properties selling (to the value of $618.6 million), while 88 properties were withdrawn.

This time last year, Sydney had 688 properties listed for auction and a clearance rate of just 34.4 per cent.

Results were provided for 633 of those auctions, with 218 properties selling (to the value of $236.3 million), while 328 were withdrawn.

Melbourne

Melbourne’s auction volume increased to 1062 properties this week, while the preliminary clearance rate came in at 74.5 per cent.

Results have so far been provided for 821 of those auctions, with 612 properties selling (to the value of $491.8 million), while 77 properties were withdrawn.

Last week, Melbourne’s final clearance rate was 69.6 per cent after 904 properties went to auction.

Results were provided for 843 of those auctions, with 612 properties selling (to the value of $436.8 million), while 90 properties were withdrawn.

This time last year, Melbourne’s clearance rate was 30 per cent on the back of 864 properties taken to auction.

Results were provided for 791 of those auctions, with just 237 properties selling (to the value of $171 million), while 509 properties were withdrawn.

Ray White results

The Ray White group reported the auction market was “full steam ahead” at the weekend as bidders across the country went above and beyond to secure their desired property.

The group booked a strong preliminary clearance rate of 83.2 per cent with a number of solid outcomes achieved for sellers across multiple states.

Internal auction data from the Ray White Group showed that since the start of the year, more than eight in every 10 properties have sold via their auction campaigns – up a huge 12.65 per cent on the same dates last year.

Those outstanding numbers continued at the weekend with Sydney (90 per cent) and Melbourne (80.8 per cent) both recording strong preliminary clearance rates.

New South Wales

Ray White NSW Chief Auctioneer Alex Pattaro said the auction process was helping sellers to maximise the competition, and ultimately, that maximised the final outcome.

“We continue to see great clearance rates, but sellers do need to be mindful that sale prices are well above where they were even six months ago,” Mr Pattaro said.

“My advice is that if the competition on auction day is above the feedback of the four-week campaign, then you should take the highest bid, rather than chasing a ‘dream price’ post-auction that may never come.

“With the market so buoyant, it’s still critical to ensure you choose an agent who will stick to the auction process to ensure you get the best price, as properties don’t sell themselves.”

Victoria

Ray White VIC/TAS Chief Auctioneer Matt Condon said high levels of buyer demand continued to drive exceptional auction results right throughout Victoria.

“Today has seen properties right from entry-level all the way up to prestige experiencing a high average of registered and active bidders per auction,” Mr Condon said.

“On the ground, the rain held back all day bringing crowds out in force and creating a great auction atmosphere with bidders doing all they could to secure their desired property.

“Even once a property is announced as on the market and selling, we’re continuing to see competition past that point.

“The high level of buyer demand and the favourable market conditions continue to create conditions that are conducive towards sellers achieving premium prices.”

Queensland

Ray White QLD Chief Auctioneer Mitch Peereboom said clearance rates remained strong off the back of a 100 per cent clearance rate last weekend and results had not slowed down.

“Huge crowds have come out to check out the marketplace today and there were a number of people in those crowds that were holding paddles to bid,” Mr Peereboom said.

“The marketplace is particularly strong in the $800,000 to $1.5 million range. We know buyers have been selling and have then been looking to upgrade and that bracket is performing excellently.

“If you’re in the marketplace and would like to consider coming to the market then have a chat to your agent about what your options are. But the big message we have is don’t sell to the first buyer that comes along, wait it out to get the best price.”

South Australia

Ray White SA Chief Auctioneer John Morris said it was a solid week of auctions in South Australia coming off the back of last week where the clearance rate sat at 77 per cent.

“It has been an absolutely fantastic week and month in South Australia, and as we look ahead to next Saturday and Sunday, my diary is packed out with auctions,” Mr Morris said.

“I’m actually having to turn bookings away at the moment because I just can’t fit them in on a Saturday or a Sunday.

“Auctions are coming in thick and fast on other days. Thursdays, Fridays, and even Tuesdays we’re having auctions in the late afternoons/early evenings which is unheard of in South Australia, but that’s what we’re having to do to fit them all in.”

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