Auction results across Australia

There are very few things that get the adrenaline rushing more than a good auction. Properties are often sold in a flurry of bids, too quick for the human eye to follow. However, not all Australians feel the same way about offering houses for sale in this manner. In fact, some while some cities are renowned for their high numbers and great auction results, some are much more comfortable with private treaty.

Auction results in Melbourne

Melbourne isn't shy with it's title as the auction capital of Australia. In fact, this method of sale has only gone from strength to strength this year. With 1,046 auctions scheduled for the week to Sunday 24 May, last week was a busy one for real estate in Melbourne according to the Real Estate Institute of Victoria (REIV). A little less so when compared to the 1,132 auctions held this time last year, but the improved clearance rate shows that the auctions in 2015 are about quality as well as quantity.

While the rate of homes sold under the hammer was an impressive 71 per cent this week last year, 80 per cent in 2015 blows it out of the water. This is even an improvement on the 77 per cent seen just a week previously. Melbourne doesn't only record good auction results, this method of sale dominates when compared to private sales. There last week according to the REIV - only half the number of auctions held.

However, this hasn't always been the case. According to REIV CEO Enzo Raimondo, in 2014, 60 per cent of sales were by private treaty. Even though a record 40,000 auctions were held over 2014, close to 50,000 private sales were transacted throughout the year.

"While auctions can be favourable to the seller, with the white heat of competition encouraging ever-higher bids and buyers to be highly assertive, private sales avoid that stress. They also allow a longer marketing period than an auction campaign, which is generally a month," said Mr Raimondo on 6 May.

National auction results

While it's all go in Melbourne, real estate in Australia isn't actually all about auctions. It can be a very good way to sell your home, but it's not for everyone. In fact, in Brisbane and the rest of Queensland clearance rates are closer to half that of Melbourne.

Sydney and NSW are right up with there compared to Melbourne, consistently over the 80 per cent mark, while real estate in Adelaide seems to be on the up and up, steadily rising to clearance rates similar to that of the Victorian capital over the last few weeks.

Why are auctions so successful?

"While private sale levels are still extremely high, there has been a steady growth in auction levels statewide," said Enzo Raimondo earlier this month. And why is this? It's because they generate such intense competition.

Human beings are innately competitive it seems, and auctions are carefully designed to be short, sharp and sweet, This means quick campaigns with large marketing spends, aiming to get a large amount of buyers in the room on the day. By pitting buyers against each other in an open forum, agents and auctioneers give the property the optimal chance to reach the price the market is willing to pay. Conversely, a private sale offers both buyer and seller less stress on the day, and the chance to negotiate to a level that satisfactory to both parties.

There are benefits to both methods and neither will truly supplant the other, as each property type and location demands a different tactic when it comes to buying or selling. This is where the expertise of your local real estate agent comes into play - they'll know what's right for your home and the market you're in.