Auction activity has risen for the third consecutive week, with 1909 properties taken to auction across the major capitals to return a preliminary clearance rate of 58.8 per cent.
CoreLogic noted this week’s volume was 5.4 per cent higher than the previous week when 1812 auctions took place, and 8.4 per cent higher than this time last year when 1761 auctions occurred.
“Of the 1411 results collected so far, 58.8 per cent were successful,” CoreLogic said.
This was 2.8 percentage points higher than last week’s initial success rate of 56.1 per cent, which revised down to a final clearance rate of 51.9 per cent.
“Last week’s result was the lowest final clearance rate recorded since early May 2020,” CoreLogic noted.
In Melbourne, 804 homes were taken to auction this week.
This volume was a 13.2 per cent increase on last week when 710 auctions took place, and 22.6 per cent higher than this time last year when 656 auctions were held across the city.
So far, 634 results have been collected, returning a preliminary clearance rate of 60.9 per cent.
The clearance rate is 3.9 percentage points higher than last week’s figure of 57 per cent, which revised down to 52 per cent at final figures.
This time last year, 77.2 per cent of Melbourne auctions were successful.
In Sydney, volume dropped 7.1 per cent compared to last week, with 626 auctions held across the harbour city.
The volume was also 6.7 per cent lower than this time last year when 671 auctions occurred.
Of the 466 results collected so far, 55.6 per cent were successful.
The initial success rate is lower than the previous week’s preliminary clearance rate of 56.6 per cent, which revised down to 50.8 per cent at final figures.
This time last year, 76.1 per cent of homes taken to auction across the city were successful.
“Withdrawal rates remain high across the city, with 26.4 per cent of the 466 results collected reported as withdrawn,” CoreLogic reflected.
“In comparison, of the 634 results collected in Melbourne so far, 11.7 per cent were reported as withdrawn.”
The smaller capitals
Across the smaller capital cities, Adelaide recorded the strongest preliminary clearance rate (79.6 per cent), followed by Canberra (54.2 per cent), Brisbane (46 per cent) and Perth (43.8 per cent).
Brisbane was the busiest auction market this week with 192 homes taken to auction across the city, up 7.9 per cent from the previous week.
Adelaide saw 170 homes taken to auction this week, up 25.9 per cent from the previous week, while 96 homes were taken to auction in Canberra, down 3 per cent from the previous week.
There were 20 auctions in Perth this week, increasing 25 per cent from the previous week, while just one auction was held in Tasmania and the property sold under the hammer.
Domain has reported a preliminary clearance rate of 57.5 per cent after tracking 1543 auctions across the major capitals.
So far, results are in for 1038 of those auctions, with 597 properties selling (to the value of $472.1 million), while 191 properties were withdrawn.
Last week, the final clearance rate was 50.3 per cent after 1491 auctions took place.
Results were provided for 1301 of those auctions, with 655 properties selling (to the value of $493.5 million), while 209 properties were withdrawn.
This time last year, the national clearance rate was 73.8 per cent after 2050 auctions took place.
Results were provided for 1345 of those auctions, with 993 properties selling (to the value of $1330.5 million), while 185 properties were withdrawn.
Sydney’s preliminary clearance rate is currently sitting at 55.7 per cent after 570 auctions were held this week.
So far, results are in for 348 of those auctions, with 194 properties selling (to the value of $189.4 million), while 110 auctions were withdrawn.
Last week, Sydney’s final clearance rate was less than half, with 48.1 per cent of the 577 auctions that took place proving successful.
Results were provided for 480 of those auctions, with 231 properties selling (to the value of $195.1 million), while 120 auctions were withdrawn.
This time last year, Sydney’s success rate was 72.3 per cent after 571 auctions took place.
Results were provided for 545 of those auctions, with 394 properties selling (to the value of $673.2 million), while 101 auctions were withdrawn.
Melbourne’s clearance rate was 57.8 per cent this week, after 629 auctions took place.
So far, results have been provided for 519 of those auctions, with 300 properties selling (to the value of $214.6 million), while 59 properties were withdrawn.
Last week, Melbourne’s final success rate was 50.6 per cent after 629 auctions took place.
Results were provided for 557 of those auctions, with 282 properties selling (to the value of $209 million), while 66 properties were withdrawn.
This time last year, Melbourne’s clearance rate was 74.3 per cent after 1171 auctions took place.
Results were provided for 534 of those auctions, with 397 properties selling (to the value of $486.3 million), while 63 auctions were withdrawn.
Ray White results
The Ray White group noted Saturday’s auctions offered a flurry of positivity around the country, particularly for those cautiously waiting and watching the market.
The real estate group recorded a 65 per cent preliminary clearance rate nationally on Saturday, sharply higher its clearance rate of 54 per cent last Saturday.
Registered bidders jumped too, with an average of four per auction.
“Both anecdotally and through the group’s real time data, Sydney’s auctions performed extremely well today,” the Ray White Group said.
Sydney’s preliminary clearance rate jumped right back up to a high 70 per cent, more than 20 per cent higher than last week.
“The top sale of the day shows the prestige property market is still very buoyant, evidenced by eight competing bidders seeking to buy 27 Braeside Street, Wahroonga which sold for more than $13 million under the hammer on Sydney’s upper north shore,” they said.
Ray White Upper North Shore agent Adam McKay said there wasn’t a doubt in his mind that the auction method was the best way to achieve a premium result.
The rise in auction popularity as a sales method likely comes down to the fact that those who sold under the hammer this year on average achieved an extra 11 per cent on their sale price than if they had sold prior, the Ray White Group stated.
Ray White New South Wales chief auctioneer Alex Pattaro said Saturday provided a strong conclusion to the month of July, with buyers out in force.
“The market remains very price sensitive. Buyers want to see value before they commit, and once they see other buyers starting to participate, they are likely to engage,” Mr Pattaro said.
“The strength in our auction results this week could be the marker of some stabilisation in Sydney,
“Buyers and sellers are already factoring further interest rate rises into their pricing decisions, which means we may start to see more properties selling under the hammer.”
Ray White Victoria chief auctioneer Matt Condon said Saturday offered another strong day of auction volume across the state.
The beautiful weather saw crowds out in force creating a great atmosphere at auctions.
“Preliminary data from the Ray White Group revealed a slight drop in the average number of active bidders per auction,” he said.
“The market is price sensitive at the moment, however when buyers see value in a property, we are continuing to see strong and competitive bidding at auction.
“Sellers who choose to meet the market during their campaign are ultimately being rewarded with more inspections, bidders and ultimately a better result on auction day.
“The more bidders and competition a property has, the more confidence buyers have to purchase. This social proof is a key element to achieving a premium price at auction.”
Ray White South Australia and Northern Territory chief auctioneer John Morris said the final weekend of July brought strong results for Adelaide.
“While we may be bracing ourselves for further drops in clearance rates due to rate rises, we are still in a strong position,” Mr Morris said.
“The security of an auction contract should give sellers confidence in their sale.
“Adelaide is one of the few markets where we are still seeing an increase in property prices, and while it may not be at the heady heights of 2021, it is still well above the average of the past 10-15 years,” he said.
“We are sitting at about five bidders per auction on average, and in most cases the reason for a property not selling is a misalignment between vendor expectations and the current market.”
Ray White Queensland chief auctioneer Gavin Croft said the auction narrative continued to change week by week and at a rapid rate.
“There seems to be little consistency in results at the moment, as buyers, sellers and agents continue to work through the changing market,” he said.
“Properties selling prior is becoming quite commonplace, with vendors not wasting any time to secure a strong result as soon as it comes through.”