This week proved to be the busiest auction week since the pre-Easter peak, with 3,229 properties going under the hammer in capitals combined to record a preliminary clearance rate of 63.7%.
CoreLogic noted that the auction win rate and volume were higher than in recent weeks, with volume almost double that seen last week during a federal election.
Volume also increased by 11.2% compared to the same week last year, when 2,905 auctions took place.
“After trending downward for five consecutive weeks, the capitals’ combined preliminary clearance rate rose 80 basis points this week, with 63.7% of the 2,528 results collected so far yielding a positive result,” said declared CoreLogic.
“Last week’s preliminary clearance rate of 62.9% has been revised to 61.3% in final figures, while at the same time last year, 73.5% of auctions held were crowned with hit.”
With 1,460 auctions held across the city, Melbourne auction activity increased by 105.1% this week, more than double the 712 auctions held the previous week.
“With 1,220 results collected so far, Melbourne’s preliminary clearance rate has increased by one percentage point, from 61.9% last week to 62.9% this week,” CoreLogic reported.
“Last week’s preliminary rate has been revised to 62.2% at final figures.”
At the same time last year, 71.7% of the 1,246 auctions held in Melbourne were successful.
Sydney auction activity has surged this week, with 1,119 auctions taking place in the port city.
It was the first time in seven weeks that Sydney’s volume exceeded 1,000, and it was also more than double the 532 auctions held the previous week, but down 4.7% from the 1,174 auctions held at that time Last year.
“After hitting a low of 58.7% in early May, Sydney’s preliminary clearance rate continued to rise for the third week in a row, with 62.8% of the 869 results collected so far yielding a positive result” , said CoreLogic.
Last week’s preliminary clearance rate of 61.7% was revised down to 58.4% according to final figures, while at the same time last year, 76% of auctions held saw a positive result.
The small capitals
Auction activity rose 51.9% in small capitals this week with 650 auctions held.
Brisbane has overtaken Adelaide as the busiest small-cap market, with 252 homes up for auction this week, followed by Adelaide (224) and Canberra (149).
Adelaide recorded the highest preliminary clearance rate, up 11.4 percentage points from the previous week (68%), with 79.4% of auctions held registering a successful outcome.
Canberra (73.5%) and Brisbane (55.1%) followed, both of which saw lower preliminary clearance rates.
In Perth, eight of the 15 auction results collected so far have been successful while neither of the two results collected in Tasmania have been successful.
Domain reported a preliminary clearance rate of 63.7% after tracking 2,708 auctions in major capitals.
So far, results have come in for 1,826 of these auctions, with 1,163 properties sold (worth $984.3 million), while 287 properties have been withdrawn.
Last week, the final clearance rate stood at 59.4% after 1,140 properties went up for auction.
Results were provided for 941 of those auctions, with 559 properties sold (worth $475.3 million), while 110 properties withdrew.
This time last year, Domain’s national clearance rate was 72.2% after 2,455 auctions.
Results were provided for 2,178 of those auctions, with 1,572 properties sold (worth $2,149 million), while 309 properties withdrew.
Domain’s preliminary clearance rate for Sydney currently stands at 62.8% after 1,013 auctions were held in the port city over the weekend.
So far, 637 of these auctions have achieved results, with 400 properties sold (worth $422.1 million), while 154 properties have been withdrawn.
Last week, Sydney’s final clearance rate was 59.3% after 337 auctions that took place over the weekend of the federal election.
Results were provided for 263 of those auctions, with 156 properties sold (worth $170.1 million), while 51 properties were withdrawn.
This time last year, the port city hosted 967 auctions, resulting in a final clearance rate of 73.4%.
Results were provided for 929 of these auctions, with 682 properties sold (worth $1,207 million), while 97 properties were withdrawn.
This week Melbourne hosted 1,320 property auctions resulting in a preliminary clearance rate of 63.7%.
So far, results are in for 950 of those auctions, with 605 properties sold (worth $452.8 million), while 110 properties have been withdrawn.
Last week, Melbourne’s final clearance rate was 57.7% after 595 properties went up for auction.
Results were provided for 497 of these auctions with 287 properties sold (worth $230.5 million), while 46 properties were withdrawn.
At this time last year, Melbourne’s clearance rate was 71.3% after 1,240 properties went up for auction.
Results were provided for 1,006 of these auctions, with 717 properties sold (worth $767.2 million), while 201 properties withdrew.
Ray White Results
The Ray White Group noted that temperatures may have cooled but buyer activity remained flat as the last weekend in May saw auction sentiment rebound after the federal election.
They noted that many agents reported stronger buyer sentiment on Saturday, with the group returning a national decision rate of 73%, with 4.5 registered bidders on average attending Ray White auctions across the country. and 2.9 active bidders on average.
“This is still historically high compared to pre-pandemic numbers and as we head into winter, cooler days traditionally mean a cooler market,” the group said.
“Proving that the auction method is still the best way to go, even in today’s market, sellers who stood and auctioned this week earned almost 12% more on average than if they had sold before.
The group’s continued registrations fell 10% in April, meaning May started off on the leaner side.
“The lack of new inventory on the market created a challenge for buyers to find quality properties, which meant that highly sought-after properties were still in high demand.
“As we approach June, listing authorities (properties listed but not yet online) are still down, but only just over 2% from a year ago, indicating just over choice for buyers next month.”
Alex Pattaro, chief auctioneer of Ray White New South Wales, said current auction data would suggest this is the new normal.
“Clearance rates inside the 60% band and an average number of registered bidders of around four people per auction are always a positive sign for sellers,” he said.
“Bidders attending auctions are now ready to make decisions and sellers in the market need to remember that the prices we are getting at auctions are significantly higher than they were 18 months ago.”
Ray White Victoria and Tasmania CEO Stephen Dullens said with the election distraction now behind us, activity in the market has seen a surge.
“We know that every time there’s a federal or state election, customers watch with interest and market activity slows down,” he said.
“With over 220 Ray White auctions scheduled for Victoria this week, potential buyers have wasted no time returning to auctions and opening homes in search of their next real estate purchase.
“Preliminary results so far this week show more than three active bidders per auction – the highest level since before the start of the election campaign.
“With almost 200 auctions scheduled in Victoria next week, we continue to see strong activity and strong demand across the market.”
Gavin Croft, chief auctioneer at Ray White Queensland, said Saturday had been a mixed day in the river town.
“At some auctions you have this incredible force that really drives the behavior and the bidding, and then at others you can see the market move,” he said.
“To say that buyer behavior over the past four weeks has not changed would be incorrect.
“I think we’re seeing buyers a little more measured in their approach in some areas and that was certainly the case today.”
As we enter the last auction weekend for the fall, John Morris, chief auctioneer at Ray White South Australia, said the weather may be cooling but results are still simmering impressively.
“Last week, CoreLogic reported 70% clearance statewide while our members reported 87%, which is staggering for the same metric,” he said.
“It is made even more impressive by the fact that we called 31.2% of all auctions across South Australia, three times as many as our nearest competitors.
“It proves yet again that if you want the job done and you want great auction results, make sure there’s a yellow sign outside your front door.”