Auction clearance rates remained buoyant last week, continuing a strong run of good results in Sydney and Melbourne in particular.
In Melbourne, propertydata.com.au reported a clearance rate of 62 per cent for the weekend based on 163 auctions. This was well up on the 50 per cent clearance rate reported on the same weekend last year.
“With the low number of auctions held this weekend due to the Derby and Melbourne Cup, and with many people taking advantage of a four day break, the clearance rate will not be an accurate indicator of the current market conditions,” Real Estate Institute of Victoria (REIV) CEO, Enzo Raimondo, said.
“There were 163 auctions reported to the REIV this weekend, with 101 selling and 62 being passed in, 41 of those on a vendor bid. The REIV expects around 810 auctions next weekend.”
In Sydney, the auction clearance rate topped 60 per cent last week based on 563 auctions, according to propertydata.com.au.
“This spring selling season has indicated that clearance rates are trending upwards, a positive sign for the market,” said REINSW CEO, Tim McKibbon.
“This month, we are likely to see continued strong results, as many vendors endeavour to sell their properties before the looming end of year deadline.”
Results have also been strong across other parts of the country.
WA-based group ACTON has reported a steady increase in the number of auctions this year.
“The stats speak for themselves, auctions get results and their use is increasing,” ACTON managing director Graeme Baxter said on Friday.
“Last October we had five auction listings, compared with 14 this year. Last November we had 13 auction listings in total, this November 19 auctions are already booked and the number is still rising. In the year to 31 October 2011, 10 properties sold at auction or sold prior, this year to October 31, 33 properties have been sold under the hammer or prior to auction.”
Auction clearance results have been marginally better in south east Queensland, hovering around the 50 per cent mark, according to data released early last week from the Jason Andrew Group.
Director, Jason Andrew, said a high level of uncertainty amongst buyers teamed with increased price expectations amongst sellers had failed to achieve the traditional buoyancy of the spring market, instead leading to an uneasy balance.
“We are seeing a good level of buyer activity, although with a high level of uneasiness about the future also tangible,” Mr Andrew said.
“Meanwhile, many vendors falsely believe that recent interest rate cuts will definitely have a positive effect on prices, which is leading to a clear reluctance to moderate unrealistic price expectations”
“There is never a guarantee that rate cuts will stimulate the property market and we’re certainly not seeing any widespread pressure on price at this point.”
“Critically, to make good property decisions, both parties need to stay rooted in the present conditions, not base their actions on what may or may not happen in the future.”