Victorian auction numbers are down when compared to this time last year, according to the Real Estate Institute of Victoria (REIV).
Just 140 properties will go under the hammer this weekend, in contrast with the 189 auctions held this time last year, and 181 auctions in 2010.
“The fact that overall prices are lower in most suburbs than a year ago and the cost of borrowing is lower should help encourage a few buyers back into the market,” a spokesperson for the REIV said.
“Following the annual pause over January, volumes in the auction market pick up this weekend with around 140 auctions expected. Next weekend around 305 auctions are expected and 620 on the weekend of 18 and 19 of February.”
According to REIV statistics from December, 21 2011 until January, 28 2012, there have been 80 auctions with 40 of the properties being sold. There has been no clearance rate, as yet, due to less than 100 auctions being recorded.
But not all auctioneers are experiencing a fall in auction numbers. One principal from hockingstuart Altona, Anthony Anile, has shifted some private treaty listings leftover from last year to auction campaigns in an effort to stimulate sales.
“Our clearance rates at auctions are higher than 60 per cent, which is above the average in Victoria,’ he told Real Estate Business.
“Auctions are a beautiful thing if handled correctly and they have always been successful for us.
"We moved some private treaty sales to auction and they have sold [already]. They were scheduled to be auctioned this weekend."
Despite the REIV recording a slump in auctions, Mr Anile said he has more auctions scheduled in February than last year.
“Every market and suburb is different so it is important to look within our own market place,” he said.
“The interest rate reductions will stimulate the market, and as soon as rates come down confidence goes up. The media is also a lot more positive about the real estate market and from that we will see, on average, better clearance rates than last year.”