This week proved the second busiest auction week of the year, with CoreLogic reporting a preliminary clearance rate of 81 per cent after 3033 properties went to auction across the combined capitals.
The volume is an increase on last week when 2940 homes were taken to auction, while this time last year, 1427 auctions were held across the combined capitals.
Meanwhile, this week’s preliminary clearance rate is almost on par with last week’s 81.8 per cent, which revised down to 78.3 per cent at final figures.
Over the same week last year, 66.9 per cent of reported auctions were successful across the combined capital cities.
Melbourne enjoyed its third busiest auction week of the year, hosting 1474 auctions. This was down only slightly from the previous week when 1493 auctions were held.
This time last year, 490 auctions were held across Melbourne.
“Of the 1255 results reported so far, 80.1 per cent have been successful,” CoreLogic said.
“In comparison, the previous week recorded a preliminary clearance rate of 79.4 per cent, revising down to 74.9 per cent at final figures, while this time last year, 63.5 per cent of reported auctions were successful.”
In Sydney, 973 homes were taken to auction this week, up from 916 over the previous week and 700 this time last year.
There have been 856 results collected so far, returning a preliminary clearance rate of 80.8 per cent.
The previous week saw a preliminary clearance rate of 85 per cent, which revised down to 81.5 per cent at final figures, while this time last year 70.4 per cent of reported auctions were successful.
“Once final results are collected, there is a chance we will see Sydney’s final auction clearance rate drop below 80 per cent for the first time since the week ending 22 August,” CoreLogic noted.
The smaller capitals
Across the smaller auction markets, Adelaide recorded the highest preliminary clearance rate at 90.5 per cent, followed by Canberra (87.2 per cent), Brisbane (80.2 per cent) and Perth (42.9 per cent).
There were just two auctions held in Tasmania this week, with results yet to be reported.
Domain has reported a preliminary clearance rate of 77.3 per cent after tracking 2048 auctions across the major markets this weekend.
So far, results have been provided for 1481 of those auctions, with 1145 properties selling (to the value of $1040.4 million), while 201 properties were withdrawn.
Last week, the clearance rate settled at 77 per cent after 1978 properties were taken to auction.
Results were provided for 1612 of those auctions, with 1241 properties selling (to the value of $1162.3 million), while 190 properties were withdrawn.
This time last year, the clearance rate was 67.5 per cent after 1050 properties were taken to auction.
Results were provided for 976 of those auctions, with 659 properties selling (to the value of $878.1 million), while 113 properties were withdrawn.
Melbourne’s preliminary clearance rate was 76.3 per cent this week after 994 properties were taken to auction.
So far, results have been provided for 748 of those auctions, with 571 properties selling (to the value of $448.1 million), while 111 properties were withdrawn.
Last week, Melbourne’s clearance rate was 73.5 per cent after 1000 properties were taken to auction.
Results were provided for 808 of those auctions, with 594 properties selling (to the value of $457.4 million), while 105 properties were withdrawn.
This time last year, Melbourne’s final clearance rate was 57.6 per cent after 286 properties were taken to auction.
Results were provided for 264 of those auctions, with 152 properties selling (to the value of $145.2 million), while 34 properties were withdrawn.
Domain’s figures indicate Sydney’s preliminary clearance rate is sitting at 76.5 per cent this week after 721 properties were taken to auction.
So far, results have been provided for 519 of those auctions, with 397 properties selling (to the value of $450.9 million), while 77 properties were withdrawn.
Last week, Sydney’s final clearance rate was a higher 80.6 per cent after 677 properties were taken to auction.
Results were provided for 563 of those auctions, with 454 properties selling (to the value of $558.1 million), while 57 properties were withdrawn.
This time last year, Sydney’s clearance rate was 72.2 per cent after 621 properties were taken to auction.
Results were provided for 572 of those auctions, with 413 properties selling (to the value of $650.2 million), while 64 properties were withdrawn.
Ray White results
The Ray White Group has reported a positive buzz at auctions across the country this weekend as lockdown restrictions eased in Sydney and Melbourne and bidders headed back onsite.
The group recorded a preliminary auction day clearance rate of 85 per cent across the country.
While Sydney produced the top sale of the day and Brisbane had the top number of bidders, the standout city by clearance was Adelaide, recording a preliminary clearance rate of 93.3 per cent.
Of the 321 scheduled auctions for Saturday, 115 proceeded to auction, with average registered bidders booked at 7.2 nationally. Of those, there were four active bidders on average.
“Notably, an auction in Brisbane had 35 registered bidders which demonstrates the intense buyer demand,” the Ray White Group said.
While house prices have been increasing on the back of strong demand, Ray White chief economist Nerida Conisbee said a jump in properties for sale was expected now lockdowns had ended which was likely to calm price growth.
“Most sellers are subsequent buyers. Given this is the case, it can be stressful to sell if you’re finding it difficult to buy again in a strong market,” Ms Conisbee said.
“While listings are down at the moment, we’re seeing a decent number of listing authorities (sellers signing up but the property is yet to be marketed).
“Many sellers are waiting for lockdowns to end to sell their property. This is consistent with what we’ve seen in previous lockdowns.
“A big uptick in properties for sale is great news for buyers. As well as giving more choice, it does tend to calm price growth.”
New South Wales
Ray White New South Wales chief auctioneer Alex Pattaro said it was a strong week for the Sydney auction market.
“Good properties in good locations continue to be snapped up by buyers,” Mr Pattaro said.
“Sellers need to remember that these are the best market conditions we have ever seen and if properties are passing in then price needs to be reconsidered.
“Buyers are happy to pay a premium when there is competition, although they won’t stretch their budgets if competition isn’t there on auction day.
“More choices in the market are making buyers more selective which may have implications on vendors’ hope prices over the coming months.”
In fantastic news for Victoria and particularly Melbourne, lockdowns have officially ended with additional freedoms returning.
While confidence in real estate is already running high, significant relaxation of real estate settings right across Victoria will no doubt drive further confidence into the market.
Ray White Victoria and Tasmania CEO Stephen Dullens discussed the impact these relaxed restriction settings were likely to have on the market.
“This week Melbourne officially returns to onsite auctions, now allowed with up to 50 attendees who are fully vaccinated. Despite this, of the nearly 150 auctions being called by Ray White agents across Victoria this week, most have chosen to remain online to ensure all customers can participate with lower attendance numbers,” Mr Dullens said.
“With a preliminary clearance rate approaching 90 per cent, this shows just how much our customers have embraced changes in technology in recent months and years.”
While online auctions will continue to be embraced by the industry, Mr Dullens said, with further restrictions easing, many more auctions will return to the onsite format.
“While relaxed restrictions are certainly welcome, the biggest difference will be when Victoria reaches 80 per cent double dose vaccination, expected in the next week or so,” he said.
“This will allow up to 500 fully vaccinated customers to attend an on-site auction, essentially getting us back to COVID-normal.
“We can’t wait to welcome customers back to onsite auctions and as confidence grows, we’re expecting a strong end to spring and very busy start to summer.”
Ray White Queensland’s clearance rate eased to 79 per cent last week but chief auctioneer Gavin Croft believed the energy in the market would drive clearance rates up again.
“What we’ve seen today in the marketplace and in fact right across this week is some real urgency, some real power, and some real spark back in the market,” Mr Croft said.
“That started this week with all of the in-room auction events that were run from the northern end of the Gold Coast right through to the north side of Brisbane – we saw close to 100 per cent clearance rates across four major in-room auction events.
“Based on today’s observations and what we’re seeing out in the marketplace, I suspect we’re going to see a spark back in those clearance rates this week, with the extraordinary fuel and energy in the market today, the energy, the crowds – it was all on display.”
With Ray White South Australia conducting 64 auctions across the state in the past week, chief auctioneer John Morris said he had been run off his feet.
“I’ve been calling so many auctions over the past weeks and months that my voice this week refused to work. Luckily come Friday my voice was almost back to its fine form and I was able to call auctions for my clients,” Mr Morris said.
“While my voice might not have been quite at 100 per cent, my clearance rate was, with 9/9 auctions selling so far under the hammer this week.
“The preliminary clearance for this week so far is about 90 per cent with 8.6 registered bidders per auction. This is better than last week which was 82 per cent with eight registered bidders.
“We have another 63 auctions scheduled for next week.”