The year's first week of auctions held by independent auctioneer JA Auctioneers across South East Queensland (SEQ) yielded what it termed as "impressive" 45 per cent clearance yields.
“Although it’s still early days for 2012, the results from last week are very encouraging – vendors who are ready and willing to meet the market and plenty of active and potential buyers,” director Jason Andrew said.
“The interesting piece will be what happens in February, particularly around any cash rate cut from the Reserve Bank and what, if any, of that is passed down to consumers.
“There’s no doubt at this point vendors need to remain realistic with their price expectations to entice buyers to act.”
Across the spring quarter, 57 per cent of all vendors cited a strong motivation to sell, including financial pressure, divorce, deceased estate or mortgagee in possession, the company reported. That number grew to 59 per cent across December, then jumping 20 per cent to encompass 89 per cent of all vendors across last week’s auctions, JA Auctioneers added.
An increase in the amount vendors were prepared to shift their expectations from the reserve price on auction day was also evident, the company said, growing from 5.3 per cent in December to 8.36 per cent last week.
The growth in crowd numbers was another key performance indicator, up from an average of 13 in December to 22 last week.
Rudy Grommen, principal at Ray White Goodna/Redbank Plains, located 20km from the Brisbane CBD, said auctions are his main focus when it comes to shifting properties.
“Auctions work, it is as simple as that and if an agent is realistic and upfront with vendors from the start then you will get positive results,” he told Real Estate Business.
“It is very rare for us to list anything but an auction, as an office we have a very successful auction clearance.”
“Our auctions are quite well attended. The ones we hold monthly, we have on average 25-50 people [attending],’ Mr Grommen said.
“And our average turn out for a quarterly auction can be anywhere between 250-350.”