Buyers, sellers back auctions despite holiday weekend

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Apr 24, 2017

Buyers, sellers back auctions despite holiday weekend

The combined capital city auction clearance rate was 72.1 per cent on the weekend, according to CoreLogic.

Image: Domain.

The auction market bounced back vigorously on the weekend after last week’s Easter slowdown, with 1,732 homes going under the hammer, and with a preliminary clearance rate of 72.1 per cent recorded.

Melbourne achieved the highest clearance rate of all the capital cities, with a reading of 76.8 per cent.

Both clearance rates and volumes were higher than those recorded for the corresponding week last year, when 1,565 properties were auctioned, and a clearance rate of 69.7 per cent was recorded.

Source: CoreLogic.

The Real Estate Institute of Victoria revealed to SCHWARTZWILLIAMS the weekend is on track to be the best performing post-Easter auction weekend on record. The top result is currently held by 2015, when with 639 auctions were held and a 75 per cent clearance rate was achieved.

South eastern suburbs experienced the city’s highest auction activity with 130 sales, according to the REIV, led by City of Monash and Kingston with 31 and 27 homes sold under the hammer respectively.

Strong auction activity was also recorded in Melbourne’s north with 105 sales, with 10 homes sold in Craigieburn.

City of Darebin recorded a clearance rate of 90 per cent, driven by Reservoir and Bundoora.

Real Estate Institute of New South Wales deputy president, Leanne Pilkington, told SCHWARTZWILLIAMS, "With an increase of more than 300 auctions over last weekend, the small fall in clearance rates was to be expected."

"The banks' decisions to increase investor rates will certainly have an impact on that sector of the market, and hopefully will provide some assistance to the first homebuyer," said Pilkington.

Alex Ouwens, president of the Real Estate Insitute of South Australia, told SCHWARTZWILLIAMS, that Adelaide had a "quieter weekend of auctions due to the dual long weekends".

"Results only just dipped under 70% for the first time in many weeks," said Ouwens.

"Adelaide continues to run on a sustainable growth path with agents and buyers commenting on continued low stock levels in what I describe as a long hold property cycle."