The preliminary clearance rate has dropped slightly this week after a reduction in auction volume due to a long weekend in many states to mark Anzac Day.
This week CoreLogic reported there were 2041 capital city homes taken to auction resulting in a preliminary clearance rate of 78.5 per cent.
They noted both volumes and clearance rates are down on last week’s figure when 2467 properties were auctioned across the capital cities and the preliminary auction clearance rate was 80.5 per cent.
This figure later revised down to 78.6 per cent by final collection on Wednesday.
“One year ago, a lower 413 auctions took place, as the ongoing restrictions banning onsite auctions and inspections impeded on activity over this period with only 41.1 per cent of homes selling,” CoreLogic said.
Looking at results by property type, CoreLogic further noted, so far this year, houses have outperformed units, recording final clearance rates above 80 per cent for consecutive weeks.
“This is the first week where the preliminary figure for houses has dipped below 80 per cent with 79.6 per cent of houses recording a sold result compared to the 74.7 per cent units that have sold this week,” they said.
In Melbourne, auction volumes fell, with 925 properties going under the hammer this week.
Of the 770 results collected so far, 76.1 per cent were successful results.
Compared to last week, both this week’s volume and clearance rate were lower.
Last week 1221 auctions were held, recording a preliminary auction clearance rate of 78.1 per cent, which later revised down to a final auction clearance rate of 77.3 per cent by final collection on Wednesday.
Over the same week last year, only 144 Melbourne auctions took place with a final clearance rate of 27.9 per cent.
Sydney recorded a preliminary auction clearance rate of 82.1 per cent this week across 777 auctions.
This was lower than last week’s preliminary figure of 84.8 per cent, which later revised down to 81.5 per cent at final results.
Last week, 919 Sydney homes were taken to auction.
One year ago, 192 auctions were held and a 50.9 per cent final clearance rate was recorded.
The smaller markets
Canberra was once again the standout capital city auction market, recording a preliminary auction clearance rate of 97.7 per cent this week.
Brisbane recorded the second highest preliminary figure of the smaller capital cities at 76.2 per cent.
Despite a long weekend in many states, Domain reported a preliminary clearance rate of 80.2 per cent after 1721 auctions across the major markets.
So far, results have been provided for 1223 of those auctions, with 981 properties selling (to the value of $884.3 million), while 78 were withdrawn.
This week’s clearance rate was higher than last week when 2057 properties were taken to auction and the success rate was 75.2 per cent.
Results were provided for 1914 of those auctions with 1440 properties selling (to the value of $1282.7 million), while 232 properties were withdrawn.
This time last year only a third of properties were selling at auction and the volume was low due to national lockdowns.
In the same week last year only 91 properties were listed for auction and only 35.1 per cent sold. Results were provided for 74 of those auctions, with 26 properties selling (to the value of $29.4 million), while 30 properties were withdrawn.
Sydney’s preliminary clearance rate again topped 80 per cent this week on the back of lower volume.
This week 672 properties were taken to auction, and the preliminary clearance rate was 81.3 per cent.
So far, results have been provided for 476 of those auctions, with 387 properties selling (to the value of $410.2 million), while 34 properties were withdrawn.
Last week the final clearance rate came in at 79.2 per cent after 785 properties went to auction.
Results were provided for 739 of those auctions with 585 properties selling (to the value of $625.2 million) while 92 properties were withdrawn.
In the same week last year, only 41 properties went to auction, and the clearance rate was 46.9 per cent. Results were provided for 32 of those cautions, with 15 properties selling (to the value of $20.1 million), while 11 properties were withdrawn.
Melbourne’s preliminary clearance rate this week was 78.2 per cent after volume reduced to 835 auctions.
So far, results have been provided for 601 of those auctions, with 470 properties selling (to the value of $394.1 million), while 35 properties were withdrawn.
Last week saw 1065 auctions occur in Melbourne, resulting in a final clearance rate of 70.8 per cent.
Results were provided for 1007 of those auctions, with 713 properties selling (to the value of $557.7 million), while 133 properties were withdrawn.
This time last year Melbourne’s clearance rate was 23.1 per cent after only 47 properties were taken to auction.
Results were provided for 39 of those auctions with just nine homes selling (to the value of $8.2 million), while 19 were withdrawn.
Ray White Results
The Ray White Group reported the Australian auction market is showing no sign of slowing down.
There were 333 auctions booked on Saturday alone across the Ray White network, and eight in 10 of those properties sold under the hammer.
This continues the group’s trend, which has consistently seen 80 per cent of properties listed for auction selling since the start of February.
The Ray White group reported a 62 per cent year-on-year lift in new listing authorities in the last month to 5141 new properties across Australia.
“This volume is 22 per cent higher than two years ago,” they noted.
“However total listings on the market have hit a new low, down 25 per cent on two years ago to 16,000. The extra stock is being absorbed quickly with no signs of easing in price or activity.”
Ray White agents are also appraising property in record numbers.
In the last month alone, its members appraised almost 4000 prospective sellers, up 174 per cent year-on-year but more importantly up 45 per cent on two years ago.
These indicators – along with strengthening online buyer clicks and inquiry, plus continued growth in home loan pre-approvals by Loan Market – all point to a strong winter selling season ahead, they stated.
“In fact, there is more new stock coming to market now than there has been for many years. As we look forward to May, we continue to see strong new listings numbers on the back of so many market appraisals currently being conducted,” Ray White’s Managing Director, Dan White, said.
“Auction clearance rates consistently held above 80 per cent, and agents reported strong private treaty sales.
“Our members met more buyers at open homes than they ever have before, with more than 152,000 check-ins at our opens during March, and our digital inquiries are also at record levels.”
New South Wales
Ray White New South Wales Chief Auctioneer Alex Pattaro said there were huge crowds out in force across the harbour city on Saturday.
“We continue to see strong bidding, and mass auction crowds rolling to Sydney auctions.
“Auctions are no doubt the best way to obtain the best price for our sellers, compared to other methods of sale.
“Competition at auction provides sellers with certainty they are obtaining the market’s best and allows the buyers to see the competition.
“Demand in the market remains strong with open for inspection and auction attendances up. It appears there is no sign of things slowing down anytime soon.”
Ray White Victoria Chief Auctioneer Matthew Condon said the state’s real estate market continues to exceed expectations with yet another day of strong auction results.
“Although we are seeing high volumes of auctions, it is clear that there’s still more demand than supply,” Mr Condon said.
“First time buyers were out in force today with properties under $1 million experiencing high levels of competition and exceptional results.
“Based on preliminary data from the Ray White group we have seen an increase in the average registered and active bidders per auction.”
The network cleared 85 per cent of stock on Saturday under the hammer.
“The strong buyer demand, combined with the market conditions continue to create conditions that are conducive towards sellers, achieving a premium price,” Mr Condon said.
Ray White Queensland Chief Auctioneer Mitch Peereboom said the Sunshine State had enjoyed another outstanding week, with a number of properties selling under the hammer on Saturday and across in-room auction events throughout the course of the week.
“We are seeing extraordinary selling prices that’s a direct result of competition being created between buyers.
“We are seeing reserve prices and sellers’ expectations being exceeded on a regular basis. And that’s across Queensland not only in Brisbane, but if you look at the Gold Coast, Sunshine Coast and in North Queensland as well.
“The market is performing at a high level at all price points – from apartments in the $200,000s range, right through to multimillion-dollar properties – all down the coastline.
“We look forward to the next few weeks and months ahead and we do so with so much confidence as we’ve got a lot of pent-up buyer interest and buyers who are obviously missing out at auctions and we have under bidders that we know have the cash and they’re ready to go.
“Our messages to sellers: If you get an offer early in your campaign or off-market from a buyer, don’t take it too early, get them in competition with other buyers that are prepared to pay similar numbers and you’ll find the price will drive higher than what you could have ever imagined.”
Ray White South Australia Chief Auctioneer John Morris said it had been a massive week of auctions throughout the state with just shy of 200 auctions across all the brands.
“Some 46 of them are Ray White auctions this weekend which is probably the biggest weekend we’ve seen for a long time.
“Last week, CoreLogic reported a clearance rate of 72 per cent while the same metric applied to Ray White came in at 77 per cent – I love seeing that slight difference that our members make when they apply everything that they should to the auction process.
“This resulted in 9.1 average bidder registrations and a third of those participating, and only 11 per cent of our auctions last week did not receive bidding.
“The preliminary clearance rate this week has been sitting on 77 per cent again and our average registered bidders have risen to 9.4 and every single auction so far this week has had bidding.
“Next week, it does go up a level, and we have 65 auctions for the Ray White Group throughout the week so I’m hoping to report some fantastic results from those.”