Auctions Bounce Back After Holiday Hiatus

The preliminary clearance rate across Australia's five capital cities last week was 76.9 per cent, up from 69.8 per cent the previous week, according to CoreLogic.

This six-bedroom home at 38 Newton Road, Strathfield, in Sydney's inner west, sold for $4,750,000 on the weekend, the top result for the week.

This six-bedroom home at 38 Newton Road, Strathfield, in Sydney’s inner west, sold for $4,750,000 on the weekend, the top result for the week.

The preliminary clearance rate across Australia’s five capital cities last week was 76.9 per cent, up from 69.8 per cent the previous week, according to CoreLogic.

The rebound occurred against a backdrop of higher auction volumes, with 2,347 properties taken to auction last week, up from 1,751 the previous week.  However, the number of properties taken to auction was lower than at the same time last year, when 2,675 properties went under the hammer.

This week’s strong result was, once again, the result of strong performances in the Melbourne and Sydney markets.  Performances across the other capitals was again varied.

Source: CoreLogic.

Source: CoreLogic.

Real Estate Institute of New South Wales deputy president, Leanne Pilkington, told SCHWARTZWILLIAMS, “Improved clearance rates were not unexpected this weekend after the end of school holidays and the Easter / ANZAC market impacts.”

Pilkington said she is beginning to see signs there are fewer registered bidder at auctions, which could be an early indicator market sentiment is changing.

“Although still firmly a sellers market, we are seeing lower numbers of registered bidders at many of the auctions, which is the first sign of any market change,” she said.

“We will be watching with interest for any impact as a result of the banks’ decisions to increase interest rates ahead of tomorrows Reserve Bank decision,” said Pilkington.

Real Estate Institute of Victoria president, Joseph Walton, told SCHWARTZWILLIAMS Melbourne recorded an auction record in April, with more than 2,900 homes selling under the hammer – the highest ever number of auction sales for the month.  The previous record was 2,848, set in April last year.

Melbourne’s northern suburbs dominated the market on the weekend.  Craigieburn led the way with 16 sales, while Epping and Coburg both recorded 100 per cent clearance rates.  The City of Moreland recorded the highest number of auction sales with 52 properties sold.

Walton said the Melbourne market remains strong.

“Melbourne’s buoyant auction market shows no sign of slowing with yet another auction record falling in April – the fourth [record] for the year,” he said.

“Buyer and vendor confidence remains high across the city with strong auction activity and strong clearance rates.”

Alex Ouwens, president of the Real Estate Institute of South Australia, told SCHWARTZWILLIAMS Adelaide’s clearance rate remained buoyant because “tight stock and strong tourism numbers are improving the economic outlook.”

SOURCE: The Real Estate Conversation
POSTED: May 1, 2017
AUTHOR: Staff Writer

@Jurds Real Estate – Cessnock and Hunter Valley Wine Country Property Experts – the place to buy, sell and lease property in Cessnock and the Hunter Region.

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Auctions Bounce Back After Holiday Hiatus