Weekly Auction Wrap: Has the clearance rate topped out?

While it was another strong weekend across the country for auctions, we’ve had the first downtick in a number of weeks, which could signal that the surge in the clearance rate is starting to ease.

Over the weekend, the latest Corelogic data has shown 75.7 per cent of homes sold at auction across the country, marking what is expected to be the fifth straight week above 70 per cent.

However, notably, Sydney’s clearance rate has fallen away, down to 80.3 per cent, while Melbourne came in at 75.7 per cent. There were 100 more homes going to auction over the weekend as the sellers are starting to return as we roll into spring.

Justin Nickerson (QLD)

Justin Nickerson saw another weekend of good auction results in Queensland with strong bidder numbers.

“We had another strong weekend with the clearance rate once again above 50 per cent.

“We had really good bidder numbers with a couple of auctions with double figure registrations. We’ve been seeing this all year really, with just some properties that really appeal and have large bidder numbers and you finish with out-of-line sales.

“We’re starting to see more volume as well, with a higher baseline which in turn creates more auction sales. So I think volume and activity are going to increase for the rest of the year from here.”

Luke Banitsiotis (Victoria)

Luke Banitsiotis saw the strong results continue in Victoria, while buyer numbers continue to grow.

“We had three auctions over the weekend and they all sold really well. The lowest over reserve was around $150,000. The lack of stock is really starting to take hold down here and it feels like there are even more buyers out there now than even four to six weeks ago.

“The stock is coming and that will be the real test in Victoria. If we can stay above 70 per cent then perhaps we do have a really good market, but if it falls away, then it might just be the low stock.”

David Holmes (Canberra/QLD)

David Holmes is still seeing some hesitation from buyers around Queensland, but October looks promising.

“We had a good volume of auctions, but still very hesitant buyers all weekend. There were a number of pass ins with no registered bidders.

“Things are still trying to pick up. While we are seeing some good results, each sale seems to be hard-fought at the moment. Everything is pointing to a better October, but the buyers still remain hesitant at the moment.”

Alec Brown (Canberra)

Alec Brown has seen more strong results in Canberra but there could be even more on the way.

“It was another busy one in Canberra with volumes up as well as clearance rates. It’s always fraught with danger trying to predict where things are headed. But if you have a look at the trajectory that’s a positive.

“It’s still a quiet period for the spring markets. Traditionally, the bulk of our volume is going to appear after the October long weekend, so agents are just very reluctant to run a campaign.

“The number of registrations is still extremely high, so if we can keep that going then things will come to fruition eventually.”

Matthew Condon (Victoria)

Across Melbourne, Ray While saw another strong weekend with an interesting new trend development.

“Buyer confidence remains strong this week. Inspections, open homes and bidders were all higher.

“There was also another change on the ground, with active bidders generally placing higher opening bids.

“All in all, Ray White Victoria is expecting a very strong auction clearance rate this week.”

Stu Benson (NSW)

Stu Benson was involved in another strong weekend in Sydney with some excellent results.

“It was another strong auction weekend in Sydney, with the weather bringing bidders, buyers and crowds. What a way to promote your brand! 

“Up in Cherrybrook, in Sydney’s North West, I was just about to sell a power line affected home for $1.15m, but thanks to calling it ‘on the market’ a spectator quickly registered, and proceeded to contribute another $210k to the eventual $1.36m sale price!

“He missed it by $10k, bowing out at his $1.35m budget. Speaking afterwards, he said he assumed that at $1.15m it would be passed in, so he’d talk to the team on Monday. The lesson: calling a property ‘on the market’ is a valuable tool when used correctly. Imagine costing you vendor $210k?”

“Another indicator that the market is well and truly back: I set a land price record in Glenwood at 12.30pm on Sunday, selling a 506m2 parcel for $892k, $72k above its owners already high expectations.”

Gavin Croft (Sydney)

Gavin Croft had a solid weekend in Sydney with good bidder turnout.

“There were 10 Bresicwhitney auctions this week, seven sold giving a weekly auction clearance rate of 70 per cent with an average of three registered bidders per auction.”

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.