Residential property auction market wrap

A DECLINE in listings and vendors meeting market expectations led to auction clearance rates improving last weekend. However, sales volumes were down 80% from a year ago.

According to Domain, 1,163 properties were scheduled to go under the hammer across Australia. So far, 610 auctions and 406 sales results were reported, resulting in a preliminary clearance rate of 59.3%. The total volume of sales was $264.6 million and the median house and unit sale prices were $264.6 million.

The clearance rate was an improvement from the 46.4% reported in the previous weekend from 817 listings, 636 auctions and 341 sales totalling $198.7 million, and a median house and unit prices of $835,750 and $697,500.

AMP Capital chief economist Shane Oliver said the auction market was likely helped by lower listings and vendors accepting lower prices.

He added that although the clearance rate is up from the December lows, the market remains at 2011-12 levels and sales volumes were very low.

Although the clearance rate is higher than 56.5% recorded in the same weekend last year, sales volumes fell over 80%. There were 1,845 listings, 1,578 auctions and 976 sales, totalling $1.17 billion. The median house and unit sale prices were $1,101,000 and $751,000.

Sydney

A 62.2% clearance rate was recorded in Sydney on the weekend. According to Domain, 451 properties were listed, 223 were auctioned and 171 sold. Sales totalled $112.5 million and the median house and unit sale prices were $1,070,000 and $749,000.

Oliver expects the clearance rate will be around 55% when the final results are reported, which is up from the 48.3% recorded in the previous weekend from 303 listings, 197 auctions and 126 sales totalling $76.4 million. The median house and unit prices were $1,020,000 and $810,000.

Last year the clearance rate was 54.4% from 645 listings, 498 auctions and 323 sales totalling $448.9 million. The median house and unit sale prices were $1,400,0000 and $938,000.

Corelogic recorded 1,129 private sales last weekend.

Melbourne

Melbourne’s clearance rates also picked up last weekend.

According Domain, there were 589 listings, 353 auctions and 222 homes sold, resulting in a 60.7% clearance rate. Sales totalled $142.7 million and the median house and unit sale prices were $810,000 and $569,000.

Oliver expects the final rate will be around 56%.

In the previous weekend, the clearance rate was 48.3% from 387 listings, 336 auctions and 174 sales, totalling $102.6 million. The median house and unit sale prices were $782,000 and $582,500.

This time last year, the clearance rate was 58.3%. Of the 981 properties listed, 886 went under the hammer and 541 sold, totalling $581.7 million. The median house and unit sale prices were $1,004,000 and $610,000.

The REIV reported a 63% rate last weekend. There were 458 auctions and 288 sales reported whilst 170 properties were passed in, 66 on a vendor bid. The total value of homes sold was $221 million. There were also 169 private sales totalling $103 million.

In comparison, the previous weekends’ clearance rate was 56% from 429 auctions and last year, it was 66% from 988 auctions.

Canberra

Canberra followed the trend last weekend, posting a higher clearance rate of 53%. According to Domain, there were 35 listings, 14 auctions and eight properties sold for a total of $6.168 million.

Corelogic reported a 52% clearance rate across the territory from 43 listings, 25 auctions and 13 sales whilst 12 homes were passed in. There were also 70 private transactions.

Brisbane

Brisbane bucked the trend with clearance rates falling to 17%, according to Domain. From the 54 listings, 13 properties were auctioned and only three sold under the hammer, for a total of $2.24 million.

The clearance rate was higher across Queensland (30%), according to Corelogic. It reported 229 listings, 114 auctions and 34 sales whilst 74 properties were passed in. Meanwhile 739 vendors sold their homes privately.

Adelaide

Adelaide’s market was also in the doldrums, posting a paltry 18% clearance rate. Of the 34 homes listed, seven were auctioned and two sold for $995,000, according to Domain.

However, the state wide result was better, Corelogic recorded a 58% clearance rate from 60 listings, 31 auctions and 18 sales whilst 10 properties were passed in. At the same time, there were 252 private sales.

Perth

A 23% clearance rate was reported in Western Australia. According to Corelogic, there were 51 listings, 13 auctions, three sales and 10 properties passed in. Instead, 345 vendors sold their properties privately.

Hobart

There was only one auction in Tasmania last weekend and the property failed to sell, although 194 properties sold privately.

Darwin

Northern Territory also failed to sell any homes via auction. Of the six properties offered, four went under the hammer and they were passed in, whilst 13 homes sold privately.

Australian Property Journal