Winter effect can't hold auction clearance rates back: preliminary figures show improvements across Australia

Contact

Jun 25, 2018

Winter effect can't hold auction clearance rates back: preliminary figures show improvements across Australia

The winter blues did nothing to hold back auction clearance rates, as preliminary figures suggest improvements across the combined capital cities.

Image: Belle Property Hornsby

This five-bedroom home in Asquith sold at auction over the weekend for $2.01m, as featured on Luxury List. See more: https://bit.ly/2MX6JZ5

What winter blues? Preliminary clearance rates across the country have improved on last week, increasing to 58.7 per cent, compared with last week's 52.4 per cent revised clearance rate.

Auction volumes were slightly lower over the week with 1,842 homes taken to auction across the combined capital cities, down.

The main markets of Sydney and Melbourne have already been slowing as tighter credit controls are imposed by banks on investor loans.

Sydney

While clearance rates across the country improved overall, Sydney's clearance rate could fall well below below 50 per cent for the third time this year when all the week's results from the 635 auctions listed are finalised.

Ken Jacobs of Christie's International, told WILLIAMS MEDIA that a lack of stock combined with sellers holidaying at this time of year has impacted auction numbers.

"The issue is there is a shortage of stock. It depends which part of the market you're talking about - if you mix it all together it distorts it. But part of the reason sales are down is because the number of listings is down. That is the number one trend we're seeing.

"There are still buyers out there, there are probably fewer buyers, but this is more than offset by the lack of stock.

"The winter effect has meant that we're seeing slower numbers. This time of year, the low supply is due to sellers who are away on holidays. Those at the higher end of the market are typically on holidays in the northern hemisphere for summer," he said.

This five-bedroom home in Riverview sold at auction over the weekend, as featured on Luxury List. Image: Belle Property Lane Cove.

Mortgage-reliant buyers struggling to get finance hiked up the pressure on housing prices in Sydney’s budget and mid-priced suburbs at the weekend.

The metropolitan auction clearance rate slipped to 54.5 per cent from 319 reported auctions.

In general, higher-priced areas in the prime pockets of the north shore, the eastern suburbs and the inner-west vastly outperformed more affordable suburbs.

Melbourne

In Melbourne, the market is stronger. Of the 946 auctions listed over the week, a preliminary clearance rate of 62.3 per cent was achieved, compared to last week when 56.2 per cent of the 992 auctions were successful.

Real estate agent from Fletchers Canterbury, Jeremy Desmier, told WILLIAMS MEDIA that while housing stock has "thinned out" good sales are still being made.

This three-bedroom house in Balwyn sold at auction over the weekend, as featured on Luxury List. Image: Fletchers Canterbury.

"It has definitely thinned out for buyers over recent months, but good sales are still being made. It is a more price sensitive market, but those who have priced their property at a realistic level are definitely still attracting buyers. Other properties are taking longer to sell, even when the pricing is right," he said.

"Vendors that are clinging to last year's prices aren't selling. As new listing come on, by and large vendors are aware that the market has changed a little bit, while newer vendors are much more realistic. Buyers are more cautious now and playing the wait and see game.

"Properties with the 'wow factor', the real A-grade houses are still generating good competition, but they are very much in the minority. Most properties are being passed in at auction, with negotiations afterwards.

"It is still important as a buyer to put your hand up and secure your right to negotiate. I've seen so many examples in recent weeks where buyers are holding back thinking they will be in a better position, but then the property has sold to the highest bidder and they've missed out. It is so important for buyers to engage," he urged.

Meanwhile, a rare no reserve auction with all proceeds going to charity lifted spirits over the weekend.

It only took 15 minutes and 29 bids from 25 registered bidders on a crisp sunny day in Canberra for Ray White Rural Canberra | Yass to sell the Watson house for $761,000 under rare no-reserve auction conditions, with all the proceeds going to charity.

More than 150 people turned out for yesterday's special auction of the original 1960s Canberra red brick home which received more than 485 inquiries, and 91 inspections.

Local Canberra man Lionel Moore, who passed away in March, will be remembered as a generous benefactor for leaving his home and estate to the children’s cancer charity, Camp Quality.

RW RURAL CANBERRA YASS L-R Janie Southwell, Simon Southwell, George Southwell, Clare Southwell, Angus McLeod (auctioneer) and Domenic Johns. Picture credit: - Pat Lindley | Patorama Studios

The 664sq m property at 5 Harding St, Watson had been owned by Mr Moore for more than 50 years.

Ray White Rural Canberra | Yass sales agent George Southwell said he was 'over the moon' with the campaign and the final result.

“By running a no-reserve auction we were always going to get a result as it could have sold for $1. The property was always going to sell under the hammer to the highest bidder but to achieve a sale at $761,000 - which is actually the suburb median - is a terrific and solid price," Mr Southwell said.

"It was the most friendly and comfortable auction to attend. There was over 150 people here and it was a great vibe from everyone.

RW Rural Canberra| Yass agent George Southwell with the new buyers Melanie Kaebernick and Stuart Malloch, of Watson. Picture credit: - Pat Lindley of Patorama Studios

"Unreserved auctions are a rarity and with the proceeds of the sale going to a charity is almost unheard of. But I knew this was the best way to attract the level of interest this property deserved so I ran a textbook auction campaign but we had an unprecedented result. I have been completely blown away by the response to this campaign," he said.

Onsite for the action, Camp Quality CEO, Kylea Tink said she was extremely grateful to Lionel Moore for yesterday's auction outcome as it would have an immediate impact on the lives of kids affected by cancer.

“Bequests provide much-needed secure funding, which enables us to not only provide programs and services today but means we can plan future work to support the wellbeing of kids and their families growing up with cancer long term," Ms Tink said.

"Every bequest helps us in our mission to change the mindset of a generation facing their own cancer diagnosis, or the diagnosis of a parent or carer. Lionel’s gift will benefit Australian families in the toughest time of their lives for years to come," Ms Tink said.