Auction market still going strong

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Apr 3, 2017

Auction market still going strong

The national auction market achieved a clearance rate in the high 70s again last week.

This five-bedroom home at 77-79 George Street, Newport, Sydney, sold at auction for $4.7 million last week.
This five-bedroom home at 77-79 George Street, Newport, Sydney, sold at auction for $4.7 million last week.
This five-bedroom home at 77-79 George Street, Newport, Sydney, sold at auction for $4.7 million last week.
This five-bedroom home at 77-79 George Street, Newport, Sydney, sold at auction for $4.7 million last week.

The national auction market achieved a clearance rate in the high 70s again last week.

Auction volumes, at 2,646 properties for the week, remain buoyant, though were down slightly from the 3,171 auctions of last week, which was the second highest level of the year.

Despite generally firmer auction volumes, clearance rates have held consistently in the mid-to-high 70s, with this week's preliminary result at 78.1 per cent.

Source: CoreLogic.

Melbourne's preliminary clearance rate was equal with Sydney's at 81 per cent.

The Melbourne suburbs of Moreland had Victoria’s highest number of auctions on the weekend, with 59 homes going under the hammer and 79 per cent selling.

Kew was also one of the top-performing auction suburbs in the nation, recording a clearance rate of 92 per cent from 13 auctions.

Vendors in Mt Waverley were also successful over the weekend, recording a clearance rate of 78 per cent from 14 auctions.

Joseph Walton, president of the Real Estate Institute of Victoria, told SCHWARTZWILLIAMS, that vendors in Melbourne's outer suburbs were taking advantage of the strong auction conditions.

“Traditionally the domain of private sales, more vendors in Melbourne’s outer suburbs are opting to sell their home at auction – accounting for almost 20 per cent of this weekend’s auctions,” said Walton.

Next week is gearing up to be a bumper auction weekend as vendors get in before the Easter long weekend and Anzac Day, which coincide with the school holidays.

“Next weekend will see a pre-Easter rush with close to 1,500 homes going to auction before back-to-back long weekends for Easter and Anzac Day,” said Walton.

Source: CoreLogic.

John Cunningham, president of The Real Estate Institute of New South Wales, told SCHWARTZWILLIAMS increased stock is not putting a dent in strong demand.

"With the increased pre Easter stock meeting the still high demand it is no wonder clearance rates were still hitting over 80% in Sydney," he said.

"With stock levels falling in most areas due to Easter and school holidays it appears that Sydney buyers will get little reprieve from the fierce competition when we see the first post Easter auctions," he predicted of the post-Easter market.

Alex Ouwens applauded Adelaide's 80.6 per cent clearance rate, telling SCHWARTZWILLIAMS it was "out there with the strongest results we've had since 2007."

"Tight stock and strong tourism numbers are improving the economic outlook in South Australia", said Ouwens.

Visit Luxury list to view a five-bedroom home at 77-79 George Street, Newport, Sydney, which sold for $4.7 million last week.

Visit Luxury list to view a three-bedroom home at 8 Mathoura Road, Toorak, which sold on the weekend.