Low volumes at weekend auctions remain the order of the day.
This was the fourth weekend for Sydney holding kerbside auctions and the third for Melbourne and this weekend the auction clearance rates were more subdued.
Sure there are more properties being put to sale by auction and well located A Grade homes and investment grade properties are attracting strong competition, but buyers are being very selective (and so they should be) meaning secondary properties are not selling unless there is a significant discount.
The preliminary auction clearance rates are reported below, however at the moment in this time of market flux the exact figures are meaningless, and more important is the market trends.
Now that it’s been a few weeks since the ban on on-site auctions and inspections has been lifted, it is likely more vendors will place their properties for sale by auction and we should start to see auction volumes gradually increasing week by week.
We’ll then have a better indication of the trends, however we’ll have to wait a few more months to see the real impact of the lockdowns, unemployment, lack of immigration and business closures on our property markets.
Here are the preliminary auction clearance rates as reported by Domain
As always these will be lower by mid week when all the auction results not yet reported will be taken into account
Melbourne real estate auction results
The preliminary auction clearance rate for Melbourne as reported by Domain was 64.8% with 175 properties put to auction, up from the 102 properties listed for auction last weekend (65.9% adjusted clearance rate.)
But remember before Covid-19 Melbourne would have over 1,000 properties auctioned each weekend.
Melbourne seller who’s properties went to auction, would have scheduled these sales prior to loosening up restrictions and clearly there is sufficient buyer depth to soak up the properties put up for sale.
So far only 110 results have been reported and 15 properties were withdrawn from sale.
The unreported rate means the final clearance rate is likely to drop to the low 6o%’s.
Realestate.com.au reported that there were also 810 private sales in Melbourne this week – up from 725 last week.
A year ago in 2019 the Melbourne auction clearance rate was 59.8% and 692 properties were listed for sale by auction. Remember this was just after the Federal election and the market was still unsure of itself.
Sydney real estate auction results
The preliminary auction clearance rate for Sydney as reported by Domain was 61.9% with 367properties put to auction, up from the 248 properties listed for auction last weekend (62.5% adjusted clearance rate) and 152 the weekend before.
But remember before Covid-19 Sydney would easily have had 4 times that number of properties auctioned each weekend.
So far only 219 results have been reported and a reasonably high number of properties (49) were withdrawn from sale.
The unreported rate means the final clearance rate is likely to drop to the mid 50%’s.
Realestate.com.au reported that there were also 1,162 private sales in Sydney this week – up from 1,092 last week
A year ago in 2019 the Sydney auction clearance rate was 58.3% and 530 properties were listed for sale by auction.
Comments by Dr. Andrew Wilson
Melbourne is known as the auction capital of the world, but the proportion of properties sold at auction has plummeted.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
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