Industry NewsNationalReal Estate Industry News

Seller confidence on the up as clearance rate holds steady

Seller confidence continues to improve with the capitals reporting the highest number of auctions in nine weeks on Saturday, while volume and clearance also exceeded this time a year ago.

CoreLogic reported 1424 homes went to auction at the weekend, returning a preliminary clearance rate of 64.5 per cent.

“This was the highest number of auctions held in nine weeks, demonstrating an ongoing improvement in seller confidence as auction clearance rates hold reasonably firm under higher volumes,” they reflected.

“In comparison, the previous week saw 1251 homes taken to auction returning a preliminary clearance rate of 66.1 per cent, which later revised down to 59.6 per cent at final figures.”

“This time last year saw 1295 homes taken to auction across the capital cities and a clearance rate of 62.9 per cent was recorded.”

Sydney

Sydney was a major beneficiary of improved sentiment in terms of auction volume and successful sales.

This week the harbour city saw 614 homes go up for auction, returning a preliminary clearance rate of 66.9 per cent.

The previous week saw 522 homes taken to auction across the city, returning a final clearance rate of 61.6 per cent.

One year ago, 503 auctions were held in Sydney and a 67.9 per cent clearance rate was recorded.

Melbourne

Despite a return to restrictions, Melbourne wasn’t shying away from real estate interest either.

There were 623 Melbourne homes scheduled for auction this week, returning a preliminary auction clearance rate of 62.7 per cent, according to CoreLogic data.

Over the previous week, 558 homes were taken to auction across the city returning a final clearance rate of 60.1 per cent.

This time last year, 535 auctions were held in Melbourne and the clearance rate was a stronger 68.6 per cent.

Domain results

Domain’s figures also indicated positive momentum in terms of volume and sales, with 1150 properties listed for auction nationally, resulting in a clearance rate of 62.4 per cent.

Breaking those figures down, 730 auction results were reported, 535 sales were achieved at a combined value of $380.7 million, and 128 properties were withdrawn.

This was an improvement on last week when 1023 auctions were listed, 814 results were reported, 522 sales were achieved for a collective value of $365.8 million and 122 properties were withdrawn, resulting in a clearance rate of 55.8 per cent.

Meanwhile, this time last year 1099 properties were listed for auction, 881 results were reported, 618 sales were achieved for a combined value of $648.9 million, and 81 properties were withdrawn resulting in a clearance rate of 64.2 per cent.

Sydney

In Sydney, all signs were positive this weekend, with 529 properties listed for auction and 310 results reported. In total 248 properties sold for a collective value of $193.7 million and a clearance rate of 64.4 per cent. Just 75 properties were withdrawn.

This was up on last week’s figures when 440 properties were listed for auction, 317 results were reported, 232 properties sold for $182.7 million collectively, and 74 properties were withdrawn, resulting in a clearance rate of 59.3 per cent.

Melbourne

Domain’s figures also indicated Melbourne enjoyed an increase in volume, clearance rate and the combined value of properties sold this week.

Figures from the Victorian capital note 527 properties were listed for auction, 355 results were reported, 236 properties were sold for a combined value of $162.2 million and 42 properties were withdrawn. This resulted in a clearance rate of 59.4 per cent.

Last week, 483 properties were listed for auction, 412 results were reported, 245 sales were achieved for a value of $158.1 million, and 43 properties were withdrawn. Last week’s clearance rate was 53.8 per cent.

Ray White results

Ray White reported a ‘huge’ jump in registered bidders across the country, with 5.2 bidders signed up to bid on every lot across Ray White’s Australian auctions.

“To put that into perspective, that’s more than double the number of bidders at the same time last year,” they explained.

“Volume was also the highest it has been all year with 548 auctions scheduled nationally this week, up 30 year on year, with confidence rebuilding each week post-Covid.”

The strong buyer interest propelled Ray White’s preliminary auction day clearance rate to 74 per cent nationally.

And the standout performer was …Queensland which cleared 70 per cent of all stock in Brisbane, with a whopping 8.2 average registered bidders per lot, up 5.8 on a year ago.

New South Wales

Ray White NSW Chief Auctioneer Alex Pattaro said the last weekend of the financial year ended with a bang.

“Every single one of our key auction metrics are higher than the same time last year. Crowd attendance, auction day bidders and the clearance rates are all higher and points to the immense strength underpinning the fundamentals of the property market,” Mr Pattaro said.

“The Sydney market continues to defy any speculation of price contractions.”

Victoria

In Melbourne, a return to online auctions did little to dampen buyers spirits, with Ray White noting they had tuned in en masse from the comfort of their own homes.

Ray White Victoria | Tasmania Chief Auctioneer Matthew Condon said that with the easing of restrictions being deferred, all eyes were on Victoria’s real estate market this week with questions around how it would perform.

“It’s great to be able to report strong results right across the state. Based on preliminary data from the Ray White Group, this week has seen an increase in both registered and active bidders,” Mr Condon said.

“We’ve also seen a number of properties throughout the week convert from an onsite auction to an online auction this weekend. Given they were expecting a very high number of bidders and large crowds, we’re also excited to report that these results were outstanding.

“It’s a real credit to our agents and offices that decided to adapt technology as part of the auction process, this has allowed us to continue to create great results for our clients while operating in a safe environment.

“Despite the uncertainty surrounding Victoria, it’s been promising to see such a high level of confidence in Victoria’s real estate market from buyers and sellers alike. This week, Ray White Victoria is again expecting a strong auction day clearance rate.”

Queensland

The sun was shining in Brisbane while eager buyers flocked to auctions across the city.

Ray White Queensland Chief Auctioneer Mitch Peereboom said as Ray White moves back towards normality with onsite auctions, the leading real estate agency has seen some outstanding results.

“A number of parties are registering across multiple properties and we’re seeing performance across all different price brackets,” Mr Peereboom said.

“We’re seeing across all markets buyers willing to engage, willing to compete, they can see their competition in a transparent auction environment.

“We have so much confidence in talking to our vendors that are thinking about coming to market that now is the time to transact, now is the time to sell.”

South Australia

Ray White South Australia Chief Auctioneer John Morris said there was strong buyer demand across the state this week.

“We are looking fantastic so far in South Australia today. We had 17 auctions this week, and we had a whopping 10 registered bidders per lot which is up by seven on the same time last year.

“This is mainly due to the fact that 27 registered bidders turned out in Ingle farm.”

This unassuming lowset brick home at 5 Orley Ave, Ingle Farm in Adelaide attracted 27 registered bidders, one from as far away as Hong Kong.

Ray White West Torrens Sales Agent Marcus Cengarle said the home was sold for $401,300 after some spirited bidding on-site in front of about 70 onlookers.

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