It is not news that auction clearance rate are currently quite low. 

However, many properties are still selling, but they are using private treaty as the sales method instead. 

Over the past week or so, the market is definitely feeling more positive with that frame of mind likely to strengthen as we move towards an easing of some of the restrictions in coming weeks. 

Sales agents and auctioneers quickly moved to conducting remote and online auctions as soon as the restrictions were put in place. 

We were able to do that because these types of auctions have been around for a while already. 

Technology has certainly been our friend over the past few weeks. 

Sales agents have taken bids from potential buyers via phone for years so, again, that is nothing new either. 

The main difference at the moment is that no one is physically at the property during the auction. 

Here in Queensland, we have adopted a system that combines new technology and old school telephones. 

That because I, for one, don’t want to be responsible if an under-bidder misses out on a property because their laptop freezes at the worst possible moment! 

So, we have implemented a system that includes phone bidding via an agent, but with the support of a visual presentation online to allow buyers to feel more connected to the property and to the process. 

Buyers can see what is going on in front of them, including the bids, which can help them feel more confident when bidding. 

In a sense, they can hear and see the auctioneer and they are communicating with agents, which is almost the usual way – apart from everyone not being there physically. 

Presently, we’re calling auctions in the agent’s office, but we were prepared to do so remotely from a home studio or even from our living rooms. 

If there are multiple bidders, of course, then it would need to be conducted remotely – to ensure one agent on the phone per potential buyer – to allow for social distancing measures.

What’s ahead?

While no one knows what is likely to happen in the months ahead, I do believe that property prices won’t deteriorate significantly. 

This is partly because of fewer transactions, but also fewer mortgagee sales because of the financial support being offered by government as well as by lenders. 

Once coronavirus has been contained, and we have some semblance of business as usual, we might have an influx of properties come on the market at once, because of a backlog of  sellers. 

Auctions may need to be closed for a period of time, which means the only people who would be permitted to attend are registered bidders, in addition to the minimum required agency staff and the auctioneer. 

Even in normal market conditions, this would usually be fewer than 10 people because most of the crowd are just there to witness the spectacle. 

Auctions in hard to get to locations, such as farms, may adopt a remote system semi-permanently, which will remove the tyranny of distance for agents, auctioneers as well as bidders.

In the future, long after this is all over, it is likely that remote auctions will be a more standardised part of the real estate sector. 

However, I believe people’s appetite for all of the things that we have been prevented from doing will be robust once the crisis has passed, including going to the footy, out for dinner, or even attending auctions – regardless of whether you are bidding or not. 

Auctions have long been a much-loved part of Australian real estate landscape and I don’t think that will ever change.

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