Agents are being urged to consider winter auctions as a viable option for selling property, with clearance rates set to remain healthy over the season.
According to Raine & Horne’s director of auction services, James Pratt, the auction process has continued to yield good results despite the cooler weather, which can often be thought of as a deterrence.
“In Hobart, for example, temperatures are getting closer to winter averages, yet we saw 100 per cent auction clearances last Saturday,” Mr Pratt said.
“To be fair, the Hobart auction pool is significantly smaller than the larger mainland capitals, but even so, mainland clearance rates were still pretty healthy last weekend.”
According to Raine & Horne Auction Services, Sydney recorded an auction clearance rate of 72 per cent last weekend.
Meanwhile, Melbourne recorded an auction clearance rate of 71 per cent and Adelaide recorded an auction clearance rate of 61 per cent.
Mr Pratt said that despite the robust clearance rates across some capital cities, the number of properties listed for auction was lower than in late autumn 2015.
“Auction numbers in Sydney are down about 10 per cent, for example, compared to the numbers recorded in late autumn 2015,” he said.
“The low number of auction listings in Sydney is helping to underpin relatively healthy prices, with buyers left over from last year’s boom market and foreign investors propping up prices.”
Looking ahead, Mr Pratt said the federal election will be a distraction over the next two months, as will ongoing discussions about residential property taxes, tighter lending conditions, the falling Australian dollar and a flat economy.
“That said, traditionally with a winter auction, vendors will have less competition as the listing and stock numbers are shallower,” he noted.
“There is also merit in selling in winter before a surplus of high-rise apartment buildings hits the market later in the year, as we face the prospect of a temporary oversupply in Sydney.”
This weekend, Mosman, Marrickville and Alexandria will be popular Sydney suburbs for auctions, with a minimum of six to seven properties scheduled to go under the hammer in each, followed by Surry Hills, Rozelle and Lane Cove with five each, according to Mr Pratt.
“These are low auction listing numbers even for this time of year, yet there are still plenty of committed buyers around,” he said.
“These conditions make a winter auction a viable selling option for vendors.”