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. The Coronavirus Sinks The Global Stock Exchanges.

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

 

New Listing index april20

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

Pricesapril20

Weekchangeapril20

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%.

 

Monthchangeapril20

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Currently reported auction clearance rates are generally meaningless since properties that have been withdrawn from sale are classed the same as those that have not sold or are passed in.

Obviously with open air auctions not occurring, many properties are being withdrawn from sale and being sold privately.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

 

Auction clearance rates

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.

You can trust the team at Metropole to provide you with direction, guidance and results.

In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now!  This will give you direction, results and more certainty. Click here to learn more Metropole
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

NOW READ:

Coronavirus crisis: I have no idea what will happen to property prices!

Brisbane property market – how will Coronavirus affect it?

icon-podcast-large

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Michael Yardney

About

Michael is a director 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 his opinions are regularly featured in the media. Visit Metropole.com.au


'Coronavirus lockdown makes auction clearance rates meaningless. What’s happening to new listings? | Property Insiders [VIDEO]' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts