While ‘delta’ disruptions are clearly having an impact on the number of transactions happening in our property markets, there seemed to be no impact on the auction markets.
The Sydney auction market returned another boom time result despite being in lockdown for twelve weeks, with very little stock available to satisfy the strong demand for good properties.
While the number of properties taken to auction in Sydney was understandably low this weekend (559) the number of properties auctioned each weekend are slowly picking up. Last weekend 511 Sydney properties were put to auction, with 493 and 488 the previous 2 weekends.
This weekend 51 properties being withdrawn from sale, yet the preliminary clearance rate was a boom time level of 85.1%.
In Melbourne where inspections were not being allowed until today 434 properties were still put up for auction and 56 properties were withdrawn from sale and, of course, withdrawn properties are counted the same as a “pass in” therefore lowering the reported auction clearance rates.
Dr. Andrew Wilson of My Housing Market was tracking 1,272 auctions in the major capitals this weekend, a few more than last weekend’s 1,152.
As lockdowns and difficulty inspecting properties persist we can expect the number of properties going to auction to remain low moving forward.
Canberra was the stand-out performer with a preliminary auction clearance rate of 94.1% – but only 30 properties were put up for sale by auction in the nation’s capital.
Other preliminary clearance rates (as reported by Dr. Andrew Wilson’s Auction Insider) were:-
- Brisbane – 83.7%
- Melbourne – 72.3%
- Sydney – 85.1%
- Adelaide – 89.2%
Sydney has been in lockdown for 12 weeks now, yet the preliminary auction clearance rate was a “boom time” 85.1% (much the same as last weekend) and, of course, this will be revised lower to around the low 80%’s as the remaining auction results are collected.
Clearly, online auctions are now an accepted selling method in Sydney, and Harbour City only hosted 5569 auctions, around half the number that would normally be seen at this time of year.
Last week, a final clearance rate for Sydney as reported by Domain was 79.5%.
This weekend 51 that were planned to be auctioned this weekend were withdrawn from sale.
Realestate.com.au reported that there were also 1,570 private sales in New South Wales over the last week, much the same as the 1,560 private sales reported the week before; a great result considering Sydney’s lockdown and of course, many off-market sales would not have been reported.
The following chart from Dr. Andrew Wilson of My Housing markets shows the Sydney auction clearance trends:
Dr. Andrew Wilson commented:
The Sydney weekend home auction market remain red hot producing another booming result on Saturday despite increasing listings.
Sydney recorded preliminary auction clearance rate of 85.1% which was similar to the previous weekend and well ahead of the 72.2% recorded over the same weekend last year.
Sydney has now recorded seven consecutive weekends with clearance rate above 80% and remarkably the last three weekends above 8.5%.
In Melbourne 434 properties were scheduled for auction this week – around one-third of the number that would normally occur at this time of year.
These were originally planned 5 to 6 weeks ago, before Melbourne’s lockdown and of course, Melbourne’s extended lockdown has affected the market with property inspections not permitted until today
The preliminary auction clearance rate for Melbourne was 72.3% but will be revised lower to the high 60%’s once the remaining auction results are collected.
Last week the final clearance rate for Melbourne as reported by Domain was 76.1%.
56 properties were withdrawn from sale this weekend and these are counted as “passed in” meaning this will bring down the overall auction clearance rate.
The Melbourne market should start moving again now that property inspections are allowed and it is likely that more vendors will now put their properties to auction.
Realestate.com.au reported that there were also 985 private sales in Victoria in the last week; much like the previous week’s 948 – still a great result due to the limitation of inspections due to lockdown.
The following chart from Dr. Andrew Wilson of My Housing markets shows the long term trend of Melbourne’s auction clearance rate:
Here are the preliminary auction clearance rates as reported by Dr. Andrew WIlson
As always there will be lower by mid week when the auction results that are not yet reported are taken into account.
Auction markets are remaining resilient in the face of Covid uncertainty and stricter constraints in some Capitals.
Strong underlying buyer appetite continues to be a positive force although restricted by current Covid conditions.
The following charts from NAB and Corelogic also show the long-term auction clearance rate trend for our combined capital cities.
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