This week proved the second busiest auction week of the year, with 3033 properties taken to auction across the combined capital cities.
CoreLogic notes the higher volumes saw the preliminary clearance rate come in lower with 78.6 per cent of the 2585 results collected so far recording a sale.
In comparison, last week 2902 homes were taken to auction and a preliminary auction clearance rate of 80.4 per cent was recorded, which later revised down to a final clearance rate of 77.7 per cent.
One year ago, ongoing COVID restrictions saw just 480 auctions held across the combined capitals, and only 59.9 per cent of reported auctions recorded a successful result.
Looking at results by property type, preliminary results show houses are outperforming units, with 80.9 per cent of houses recording a sold result so far this week, compared to 71.1 per cent of units, CoreLogic said.
In Melbourne, 1420 homes were taken to auction over the week, up from 1310 over the previous week and 163 this time last year.
Of the 1222 results collected so far this week, 76.5 per cent were successful. This was down from the previous week when a 77.1 per cent preliminary clearance rate was recorded and later revised down to 75.1 per cent at final figures.
Sydney saw 1157 homes taken to auction this week, up from 1119 over the previous week and 216 this time last year.
Preliminary results show that of the 985 auctions reported so far, 82.6 per cent were successful.
Last week’s preliminary clearance rate was a higher 83.5 per cent, and revised down to 80.2 per cent at final figures.
The smaller capitals
Across the smaller capital cities, Canberra recorded a preliminary auction clearance rate of 85.5 per cent, followed by Adelaide where preliminary results show 77 per cent of auctions were successful.
Brisbane recorded a preliminary auction clearance rate of 72.0 per cent, while in Perth, 47.8 per cent of reported auctions were successful.
Domain reported a preliminary clearance rate of 78.7 per cent after tracking 2563 auctions in the major markets.
So far, they have results on hand for 1923 of those auctions, with 1514 properties selling (to the value of $1459.4 million) while 162 properties were withdrawn.
The volume is higher than last week when 2289 properties were taken to auction, resulting in a final clearance rate of 79.5 per cent.
Results were provided for 1954 of those auctions, with 1554 properties selling (to the value of $1446.9 million) while 158 properties were withdrawn.
This time last year, the ongoing COVID lockdowns were wreaking havoc with auction results. In the same week in 2020, Domain reported only 287 properties were taken to auction and the clearance rate was 55.9 per cent.
Results were provided for 256 of those auctions, with 143 properties selling (to the value of $136 million), while 60 properties were withdrawn.
Sydney’s preliminary clearance again saw more than eight in 10 properties sold at auction this week.
Domain reported 1014 properties were taken to auction in the harbour city and the preliminary clearance rate came in at 81.3 per cent.
So far, results are in for 766 of those auctions, with 623 properties selling (to the value of $726.5 million), while 83 were withdrawn.
Last week, Sydney had a final clearance rate of 79.5 per cent after 935 properties were taken to auction.
Results were provided for 821 of those auctions, with 653 properties selling (to the value of $745.9 million), while 99 were withdrawn.
This time last year only 131 properties went to auction in Sydney and the clearance rate was 67 per cent.
Results were provided for 109 of those auctions with 73 properties selling (to the value of $77.6 million), while 21 were withdrawn.
Over three quarters of all properties taken to auction in Melbourne sold this week, according to Domain’s data.
They reported 1248 properties were listed for auction and this week’s preliminary clearance rate was 76.5 per cent.
Results are currently at hand for 938 of those auctions with 718 properties selling (to the value of $590.3 million), while 63 properties were withdrawn.
Last week, Melbourne’s clearance rate was 78.8 per cent after 1085 properties were taken to auction.
Results were provided for 919 of those auctions, with 724 properties selling (to the value of $580.2 million), while 49 properties were withdrawn.
This time last year, less than half of Melbourne’s auctions were successful. In the same week in 2020, just 110 Melbourne properties were taken to auction and the clearance rate was 47.2 per cent.
Results were provided for 106 of those auctions, with 50 properties selling (to the value of $42.6 million), while 29 were withdrawn.
Ray White results
The Ray White Group reported there were no signs of a softening market, with their real-time data and anecdotes from agents indicating strong auction activity this week, larger than average crowds and 5.5 average registered bidders per property.
The property group had 426 auctions booked on Saturday and 84 per cent of them cleared under the hammer.
Ray White’s preliminary national clearance rate has maintained its hot streak of above 80 per cent since the start of February.
This week only 15 per cent of the group’s Saturday auctions sold prior, which they explained is trending back to historical averages after it had spiked up as high as 30 per cent recently.
Meanwhile, sellers who sold under the hammer this week were rewarded with a sale price 12 per cent higher than the highest prior offer once again. This figure has been consistent for some time now.
Across the capitals, Adelaide proved the standout performer, with 93 per cent of properties cleared under the hammer and 10 average registered bidders per lot.
Sydney cleared 85 per cent, Melbourne 87 per cent, and Brisbane 68 per cent.
New South Wales
Ray White NSW Chief Auctioneer Alex Pattaro said there were no signs of the market slowing down with yet another weekend of strong auction clearance rates and higher auction volume.
“There were reports earlier in the year that higher stock levels may affect their clearance rate. However, this weekend’s clearance proves anything but,” Mr Pattaro said.
“The apartment market continues to shine with agents reporting higher inquiry, and buyers at opens for inspections are still in strong numbers. Good family homes in desirable areas are selling well, and family buyers continue to dominate the market.
“We’re hearing of more buyers venturing further out of Sydney to meet their desire for prices within their budgets.”
Ray White Victoria Chief Auctioneer Matt Condon said all eyes were on Victoria’s real estate market to see how it would perform with the significant increase in auction volume this weekend.
“It is great to be able to report that this increase in volume was met with equal demand from buyers. Based on preliminary data from the Ray White Group we saw a strong average registered and active bidders across all auctions on the ground,” he said.
“The exceptional weather brought out big crowds in force, creating an exciting and competitive atmosphere at auctions.
“Buyers were bidding competitively and strategically to secure their desired property. Even once properties were announced on the market and selling, we continued to see competition past that point.”
Ray White South Australia Chief Auctioneer John Morris said there was plenty of action at Adelaide’s auctions this week.
“Yet again we have high clearance numbers and high bidder registration. Some 80 per cent of all our auctions sold at or above reserve which is just fantastic. The numbers during the midweek auctions are 6.7 registered bidders and 4.3 of those were active with a 91 per cent clearance rate. This Saturday so far, it’s looking pretty much the same,” Mr Morris said.
“On average today I’ve had 13 registered bidders per auction and so far, I am on track for a 100 per cent clearance rate day. Let’s hope this continues as there’s fantastic strength in the market.”