The current market conditions, with low interest rates and increased buyer attention, have created the perfect climate for a successful auction campaign, according to a leading network's chairman – so much so, he’d put his house on it.
Speaking at a media briefing yesterday, CENTURY 21 Australasia chairman and owner Charles Tarbey said restricted listings in the Sydney and Melbourne markets makes for the the perfect opportunity for a successful auction campaign.
“Twelve months ago buyers were sitting on the fence, now they are starting to sneak off the fence; they aren’t falling off like many media publications are claiming, but there is momentum,” he said.
“If I were selling my house in those areas – like Glenbrook in NSW – where listings are limited, I wouldn’t be using private treaty, I’d be putting it up for auction.”
According to Mr Tarbey, despite media coverage Australia is not going through a boom, and thus not all areas are perfect for auctions.
“In mining areas that have thousands of properties for sale, an auction wouldn’t work,” he said.
Mr Tarbey also further dispelled the myth that the country was experiencing a property ‘bubble’.
“A lot of people are talking about how we’re in a boom market and it’s just not true,” he said. “It doesn’t matter what you see out there with the auction clearance results – we’re not in a boom. We’re that far from it, it’s ridiculous.”
Mr Tarbey said areas that have experienced record prices were simply subject to a shortage of stock. He highlighted that real estate markets across the country are actually at different stages of the property cycle.
“It’s not a boom. A boom is when auction clearance rates are sitting consistently in the 80s right across the country on a national basis. That has happened once this year. The rest of the time it has been in the 60s and 70s," he said.