Auction activity remained robust in some regions last week despite the various football grand finals, and a long weekend in some states.
In NSW, the Real Estate Institute of NSW (REINSW) reported 424 auctions last week, with 261 selling for a 62 per cent clearance rate.
“Over the past few weeks we have seen an increase in the number of properties going to auction, which has had a positive impact on the average year to date clearance rate,” said REINSW CEO Tim McKibbin.
In Melbourne, the AFL grand final sapped any interest in auctions.
According to data from the Real Estate Institute of Victoria (REIV), 41 auctions were held on Saturday, with 30 properties selling. The REIV said it expects more than 500 auctions to be held this weekend.
In south east Queensland, independent auctioneer Jason Andrew reported that a healthy number of buyers turned their attention back to the SEQ property market after the previous weekend’s virtual absence of activity.
According to the latest data from the Jason Andrew Group (JA), last week’s auction clearance rate jumped to 39 per cent from a year to date low of just 25.5 per cent the week before.
The JA group reported an overall average of 1.16 registered buyers per auction for the last week in September, more than double the previous week’s result of 0.45 but still significantly lower than the early September high of 3.07. Crowd sizes also more than doubled with an average of 13.7 in attendance, up from just 5.96.
Director Jason Andrew said although the number of auctions and activity was somewhat lower than winter averages due to the AFL grand final, the buyer turnout and willingness to register was encouraging.
“Interestingly, although the percentage of forced sales at 45 per cent was notably higher than the previous week’s low of 34 per cent, vendors were less prepared to shift their expectations on auction day – the average shift on auction day from the original vendor reserve price dropped from 9.5 per cent to just 4.8 per cent,” Mr Andrew said.
“Across winter we saw more sellers needing to sell and buyers happy to buy. But the reduction in the average shift may well indicate sellers are becoming less prepared to accept current market value, with spring possibly drawing out more of the less realistic buyers as well.”
“Nonetheless, the improvement in the clearance rate last week despite the distraction of a major sporting event is encouraging.”