CoreLogic's Property Market Indicator has revealed auction volumes more than doubled week-on-week across Australia's capital cities, after last week's long weekend lull.
CoreLogic's Property Market Indicator Summary has revealed a significant increase in auction volumes over the week with 1,991 homes taken to auction, in comparison to last week's 904 due to the Queen's Birthday long weekend.
This week, the preliminary clearance rate was recorded at 56.9 per cent, after last week saw the final clearance rate revise down to just 53.8 per cent - the lowest level recorded across the combined capitals since 2012.
Source: CoreLogic Property Market Indicator Summary
Melbourne
With a total of 988 homes going under the hammer, Melbourne was the busiest city for auctions this week, returning a preliminary clearance rate of 58.7 per cent, compared to last week when 54.9 per cent of the 275 auctions were successful. Over the same week last year, there were 1, 129 auctions held in Melbourne which returned a clearance rate of 71.0 per cent.
Michael Ebeling an agent of RT Edgar Toorak told WILLIAMS MEDIA that the market has seen a reduction in foreign buyers and off-shore purchases due to changes in land tax laws and stamp duty.
WILLIAMS MEDIA also spoke with RT Edgar Toorak's Holly Gillham who confirmed. "The market has levelled. I wouldn't say decreasing, but it has definitely levelled. We are seeing fewer people at auctions, but auctions are still achieving excellent results. If not on the day, then certainly afterwards," she said.
Ebeling explains that despite market changes, "Anything in the city that is well located is still selling strongly."
Real Estate Institute of Victoria (REIV) CEO Gil King commented that clearance rates rose slightly from the previous week's 60 per cent. "Clearance rates on units were 66 per cent, outstripping houses, where the clearance rate was 59 per cent," he said.
King furthers that "Units accounted for approximately 30 per cent of all auction sales in Metro Melbourne, with almost half of these in the inner suburbs."
"We are receiving strong demand from people for houses in Melbourne's inner suburbs," Ebeling said.
Gillham added, "even with a levelling market, vendors willing to meet the market are achieving good results."
Sydney
In Sydney, 701 auctions were held this week returning a clearance rate of 55.8 per cent. In comparison, last week's 415 auctions returned a final clearance rate of 56.0 per cent, while this time last year 68.0 per cent of 927 auctions held were successful.
Richardson and Wrench agent Kirsty Freyer spoke to WILLIAMS MEDIA about her recent Cremorne auction saying that despite a common trend of having one serious buyer for most auctions, Saturday's auction saw three serious and registered buyers. "After 46 bids, the property was sold well over reserve," she said.
"It was a good auction, an excellent result, and everyone is very happy," she added.
This family home in Cremorne sold at auction over the weekend by Kristy Freyer of Richardson and Wrench. View this property on Luxury List.
Real Estate Institute New South Wales (REINSW) Deputy President Peter Matthews notes the high volume of properties sold prior to auction saying, "In Sydney, owners are twice as likely to take an early offer at 26% than Melbourne owners at 13%."
Freyer confirms, "Many of our buyers are trying to buy prior to auction," she says. "The Cremorne buyer made an offer within the first week of the properties campaign."
Matthews suggests many sellers contemplate private treaty in an effort to evaluate the market before diving into a full campaign.
Ebeling has noticed a similar trend in Melbourne. "With banks tightening on their funding, buyers are being more thorough and looking at everything on the market before committing to purchase."
"From the first meeting, this process can take anywhere from four weeks to six months," he said.
Brisbane
Brisbane agent Madi Roche of Ray White held a successful auction for a Teneriffe property during the week where a turnout of 50 people brought five registered bidders. Roche told WILLIAMS MEDIA that "the auction went very quickly and the property sold for $2.125 million after an opening bid of $1.5 million."
This Teneriffe family home sold at auction for $2.125 million dollars by Madi Roche of Ray White. View this property on Luxury List.
She says that often with auctions that pass in, vendor expectations can be too high. "Realistic vendors mean successful sales," she said.
"Buyers are being more cautious with banks tightening up on lending, but there are a number of quality buyers who are serious about purchasing. And quality properties attract these buyers," she added.
Roche indicated that it is the role of the agent to guide their clients.
Matthews furthers, "Seller's rely on guidance from their Agents. Professional Agents know the buyers, their interest and their capacity to perform. Then the seller can make an informed decision as to whether a bird in the hand is worth more than two in the bush."
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