Coronavirus lockdown makes auction clearance rates meaningless. What’s happening to new listings? | Property Insiders [VIDEO]

It’s not fair!

Not only am I locked indoors not being able to enjoy my normal lifestyle, but now I can’t even enjoy the fun and theatre of my weekend entertainment – property auctions.

I’ve always thought auctions were a bit like watching buskers - a bit of street theatre getting a crowd all excited.

But I’ve also found them a great way to buy properties, because of their transparency, and a great way to sell properties because of their immediacy – they set a deadline and all the interested buyers are herded together to give the best offer.

And of course, auctions gave a great real-time measurement of market sentiment, particularly happening in Melbourne and Sydney.

But that’s all changed hasn’t it?

Watch this week's Property Insider video as I discuss auction clearance rate as well as the latest findings of his new listing index with Dr Andrew Wilson, chief economist of My Housing Market.

Watch as we discuss:

New listings Index

Asking prices

Another good index of "real time" property market sentiment is Asking Prices, which historically correlated well with eventual sale prices.

At the beginning of this week, asking prices rose ever so slightly in Sydney, but fell a little in all other states compared to median city asking prices seven days beforehand

More telling our asking price changes compare to the first week of March before the coronavirus lead lockdown occurred, and here you can see that Sydney median asking prices are full about 2%.

Auction clearance rates.

Currently reported auction clearance rates are generally meaningless since properties that have been withdrawn from sale are classed the same as those that have not sold or are passed in.

Obviously with open air auctions not occurring, many properties are being withdrawn from sale and being sold privately.

However, the chart below from Dr Andrew Wilson shows that the significant number of properties still were reported as sold in Melbourne and Sydney over the weekend.

This would comprise those sold prior to auction as well as those sold by digital auction

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on

If you're wondering what will happen to property in 2020–2021 you are not alone.

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About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.