Almost two thirds of all properties put to auction sold on Saturday.
There were still a volume of properties sold before the scheduled auction time, suggestive of some hesitancy on the part of vendors thus seeking more certainty over getting sales done in the current market.
Our experience on the ground and speaking to local agents is that vendors are selling for lifestyle reasons, rather than for financial reasons.
In other words they’re not panicking about the state of the market but choosing to move into a bigger or a smaller home, or move to a school catchment area, or they want a bigger backyard rather live in a small space recognising that life is going to be different moving forward. Some want room for a home gym or a Zoom Room.
At the same time buyers are being more selective, they’re not in a hurry and there is a flight to quality, especially since there are now more properties being put to sale by auction than there were a few weeks ago.
Well located A Grade homes and investment grade properties are attracting strong competition, but buyers since being very selective (and so they should be, secondary properties are not selling unless there is a significant discount.
This weekend Sydney delivered a solid preliminary auction clearance rates of 64.4%, a bit higher than last week’s final clearance rate.
Considering the COVID-19 scare over the last week, Melbourne delivered a solid preliminary auction clearance rates of 59.4%
There are now more properties being put to sale by auction than there were a few weeks ago, with 1,150 capital city auctions scheduled this weekend, revealing a significant improvement from the lockdown lows and even a little higher than the same weekend of last year (1,099 auctions.)
In fact, Sydney’s scheduled auctions were significantly more than last year (529 compared to 434), as was the case in Melbourne – 527 this year compared with 499 last year.
The preliminary auction clearance rates are reported below, however in this time of market flux the exact figures are meaningless, and more important is the market trends.
It’s now been a few weeks since the ban on on-site auctions and inspections has been lifted, and more vendors are placing their properties for sale by auction and we’ll continue to see auction volumes slowly 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 59.4% with 527 properties put to auction, almost 20% more than the 480 properties put to auction last weekend (53.8% adjusted clearance rate) and the 410 properties listed for auction previous weekend
But remember before Covid-19 Melbourne would have over 1,000 properties auctioned each weekend.
So far only 355 results have been reported and 42 properties were withdrawn from sale.
The unreported rate means the final clearance rate is likely to drop to around 55%.
Melbourne seller who’s properties went to auction, would have scheduled these sales prior to loosening up restrictions and while there is sufficient buyer depth to soak up the properties put up for sale, this week’s auction clearance rate will end up much the same as last week’s once the balance of sales are reported.
Realestate.com.au reported that there were also 919 private sales in Melbourne this week – a few less than the 951 sold last week and but more than the 800 the week before.
A year ago in 2019 the Melbourne auction clearance rate was 69.4% and 499 properties were listed for sale by auction.
Sydney real estate auction results
The preliminary auction clearance rate for Sydney as reported by Domain was a solid 64.4% with 529 properties put to auction, considerably more than the 440 properties listed for auction last weekend (59.3% adjusted clearance rate.)
But remember before Covid-19 Sydney would easily have had double that number of properties auctioned each weekend.
So far only 310 results have been reported and a reasonably high number of properties (75) were withdrawn from sale.
The unreported rate means the final clearance rate is likely to drop to the mid to high 50%’s – a little lower than last week’s results.
According to Corelogic, Sydney houses were more likely to sell at auction than units last weekend (20th June) – we’ll have to wait until Monday to see their breakdown for this weekend.
Realestate.com.au reported that there were also 1300 private sales in Sydney this week, much the same as the 1360 last week and considerably more than 980 the week before.
A year ago in 2019 the Sydney auction clearance rate was 67.5% and 434 properties were listed for sale by auction.
Comments by Dr. Andrew Wilson
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