Auction volumes double in cities following election
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May 27, 2019
Auction volumes double in cities following election
The absence of any political uncertainty has been reflected in the auction results for the week ending May 26, with more than 2000 auctions held across the capital cities.
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Apollo Auctions9 Sorrento Close, Wellington Point - sold at auction with Patrick Ivey (Auctioneer) and agents Josh Sherwood and Jake Sherwood from Freedom Property.
A rise in auction volumes across the capital cities has capped off an eventful seven days for Australia's housing market.
In a week where APRA announced it was going to remove its 7 per cent serviceability buffer and the Reserve Bank hinted at a potential cut to interest rates, CoreLogic has indicated there were 2,041 homes taken to auction in the capitals.
The number is more than double the previous week's total of 930, but is still below the 2,297 auctions held at the same time last year.
According to CoreLogic, preliminary results show a clearance rate of 62.6 per cent across the combined capital cities, although a downwards revision is expected for the final result.
Sydney
There were 697 auctions held in Sydney last week returning a preliminary clearance rate of 69.9 per cent.
It comes after there were just 276 auctions held over the previous week returning a final clearance rate of 56.5 per cent.
Ray White NSW chief auctioneer Alex Pattaro said the group's results had shown that the "buzz was back".
Source: CoreLogic
"It seems the market has responded in a great way since the election, as shown by the increased attendances and rise in open homes," he said.
"We've seen a positive shift in consumer confidence, which may have been caused by recent monetary changes announced by APRA and the RBA."
REINSW President Leanne Pilkington said she hoped the positive results would flow through to stock levels.
"With the unexpected federal election result breathing life back into consumer confidence agents were hopeful of a positive auction outcome this weekend," she said.
"The next question will be around stock levels, which we will watch with interest in coming weeks."
Melbourne
In Melbourne, a preliminary auction clearance rate of 62.9 per cent was recorded across 971 auctions this week, while last week there were 432 auctions returning a final clearance rate of 60.7 per cent.
According to the REIV, Reservoir sold the most listings with nine homes, followed by Bentleigh with eight auction sales.
The best performer suburbs were all from Melbourne's inner ring with Coburg, Collingwood, and Hawthorn East recorded 100 per cent clearance rate from five auctions in each.
Despite the increased volumes, iSell auctioneer Harry Li, who operates in the wider Dandenong region, said it may be too soon to tell what impact the election had on the market.
"We haven't seen any notable change yet," he said.
"Having conducted two on the weekend, the election doesn't seem to have made an immediate impact."
Brisbane
Preliminary results show that clearance rates were down slightly over the week in Brisbane, which returned 37 per cent from 139 auctions.
Apollo Auctions reported an average attendance of 23 people and 2.1 active bidders.
Auctioneer Justin Nickerson said crowds and buyers had shown slightly renewed optimism for what lies ahead.
"Auction booking numbers have been on the uptick since the result was announced, so it will be interesting to see the market react to increased numbers of properties becoming available," he said.
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