Auction volumes down but preliminary clearance rate up in first week of August
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Aug 6, 2018
Auction volumes down but preliminary clearance rate up in first week of August
The first week of August has seen 1,316 homes taken to auction across the combined capital cities this week, returning a preliminary auction clearance rate of 56.2 per cent.
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Jellis Craig225 Mckean St, Fitzroy North sold at auction for $3,880,000 by Bev Adam and Peter Batrouney of Jellis Craig as featured on Luxury List.
Auction volumes were down from the last week of July when 1,536 auctions were held, with a lower preliminary clearance rate of 55.6 per cent.
In comparison, during the first week of August last year auction volumes were higher with 1,857 homes going under the hammer across the combined capital cities, returning a clearance rate of 68.2 per cent.
Source: CoreLogic
Melbourne
In Melbourne, there were 628 auctions this week with a preliminary auction clearance rate of 57.9 per cent, down from 58.5 per cent across 802 auctions last week. One year ago, the clearance rate was a stronger 73.9 per cent across 911 auctions.
Adam Saunders from Buxton told WILLIAMS MEDIA the whole the market has moved from a sellers strength to a balanced market.
“Our advice for people is still go to auction. It helps for a great result to happen in a timely manner,” he said.
“Right now we are looking at one to two serious buyers per property.”
Views from 225 Mckean St, Fitzroy North sold at auction for $3,880,000 by Bev Adam and Peter Batrouney of Jellis Craig as featured on Luxury List.
Mr Saunders said selling before auction is also something to look at as the one buyer who is really interested may end up being the only buyer for the property.
“We are also handling a lot of behind closed door sales.”
“It’s worth getting to know an agent that is really busy in the area you are looking at, as they can introduce you to properties you may not find online.”
He said there is an upturn in the amount of properties being sold without even hitting the market.
Commenting on this weekend, Mr Saunders said “We had a real upsurge in numbers around Black Rock and Beaumaris, with 20 odd groups coming through open homes, which is strong.”
“We have sold a huge amount of property in that area in the last month, including high end properties starting at $2.5 million.”
Brisbane
Brisbane had a clearance rate of 37.5 per cent with 115 auctions in total.
Six properties were sold prior to auction, 24 sold at auction, 48 were passed in, and two were withdrawn.
The median price in Brisbane was $812,000.
Sunshine Coast
The Sunshine Coast had 20 auctions this week with 13 cleared.
30 Sunbird Chase in Parrearra was sold over the weekend by McGrath for $1.78 million.
Geoff Ohmsen from McGrath told WILLIAMS MEDIA there were five registered bidders, and the auction started off at $1 million.
30 Sunbird Chase, Parrearra sold for $1.78 million by Geoff Ohmsen and Chris Pace from McGrath as seen on Luxury List
“It went to $1.5 million really quickly in $100,000 increments, and then slowed down to $20 thousand jumps.
“The auction finished at $1.57 million and I negotiated off the floor with a couple of bidders.
“There was a reserve at $1.8 million but after negotiation we settled at $1.78 million.”
Mr Ohmsen said that all five bidders were locals which was unusual, as he often sells more to people from interstate, particularly Sydney and Melbourne
“Normally half the registered bidders are from interstate and half are from Brisbane.”
“In the Sunshine Coast we often get owner occupiers, people buying waterfront homes as investment properties which they plan on knocking down and rebuilding.
“I am definitely seeing a migration from Sydney and Melbourne.”
Mr Ohmsen said that for every listing there are probably three good buyers.
“The market is definitely in the seller's favour still, but only just.”
When discussing the Sunshine Coast market, Mr Ohmsen said the Mooloolaba area is quiet buoyant.
“People are chasing great weather, it’s what they want.”
“The Council has also just bought the old Horton Park golf club near Sunshine Plaza which is going to be a massive 15 year development.”
“As a result we are seeing everyone from construction workers through to planners and developers all moving to the area.”
Sydney
Sydney had 456 auctions this week, the 4th week in a row at less than 500.
Sydney returned a preliminary auction clearance rate of 56.1 per cent.
In comparison, there were 469 auctions held over the previous week and the final auction clearance rate was 52.4 per cent, while one year ago, 620 auctions were held and the clearance rate came in at 66.4 per cent.
Related reading:
Sluggish weekend as two high profile properties fail to sell at auction
South East Queensland - good news with a cautionary note
Melbourne - steady as she goes in the world's most liveable city
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