Auction activity remains stable after rate hold

Today, the Ray White Group saw a preliminary clearance rate of 58.6 per cent, with an average of 2.3 registered bidders and 2.0 active bidders per auction.

"This week’s numbers give us something worth paying attention to given national auction volumes lifted by more than 13 per cent, yet the national auction clearance also moved higher to 54.1 per cent for the week," Ray White CEO of performance and value Thomas McGlynn said.

"Seeing both rise together is a positive signal for property owners. Sydney was particularly strong at 65.5 per cent, while Melbourne remained above 62 per cent, suggesting there is still good depth of demand in Australia’s two strongest auction markets.  

"One of the clearest features of this market is the growing gap between properties that sell well and those that don’t sell at all. Increasingly, that gap comes down to the agent.

"More than anything, this market is reinforcing the importance of how your agent operates. The small decisions, the conversations and the judgement of your agent throughout a campaign are adding up to very different outcomes for sellers.

"I think buyers have a really interesting opportunity at the moment. There’s choice starting to appear and, in many cases, buyers have a little more time to make a decision.

"But these windows rarely stay open forever. The reality with any market is you never know you’ve reached the bottom until you’re already on the way back up.

"That’s why I wouldn’t spend too much time trying to pick the perfect moment. If you find the right property, you can afford it and it makes sense for you, these are conditions worth taking advantage of."

The top result for the day went to Ray White Dalkeith| Claremont principal Vivien Yap who sold 37 Browne Avenue, Dalkeith under the hammer for $6.315 million. The auction recorded three registered bidders and two active bidders.

The auction with the highest number of bidders went to Ray White Prospect's Stefan Siciliano and Sheldon Clinch who recorded 13 registered bidders and four active bidders at their  27 Hidcote Cct, Oaken auction. The property was sold under the hammer for $1.563 million. 

SYDNEY

Ray White NSW head of auctions David McMahon said it was another week of lighter auction volume, with just 88 auctions scheduled across the market.

“While more results are still to come, the preliminary figures are encouraging. So far, 61 per cent of auctions sold under the hammer today, with an average of 2.1 registered bidders per auction,” he said. 

“With the RBA keeping interest rates on hold, it remains too early to determine whether the decision has had any meaningful impact on buyer confidence.

“As auction volumes begin to build over the next four weeks, we should get a clearer picture of how buyers and sellers are responding to the current interest-rate environment.”

55 Abingdon Road, Roseville

Sold under the hammer for $2.33 million

Seven registered bidders, three active

Lead agent: Jessica Cao - 0466 877 260

Ray White Upper North Shore

Bidding started at $2.2 million.

“The sellers were downsizing to an apartment after 21 years,” Ms Cao said.

“The buyers were a young family who had been renting locally.”

The seller, Peter, said he and his partner had enjoyed living at the property for the last 21 years, but it was time to downsize.

“We had lovely neighbours and the property offered great potential to do things. We did a lot of landscaping and gardening. We liked the little projects we could do on the house," he said.

“We had never bought or sold at auction, but we trusted Jess implicitly all through the process.

“Private treaty sales have the habit of dragging out a bit, and we didn't want that as we’d already bought our apartment and we just wanted to sell.

“We are very happy. You have to accept the market is where it's at. If you’re buying and selling in the same market, so what.”

MELBOURNE

Ray White Victoria chief auctioneer Luke Banitsiotis said early indications from across the state showed the auction clearance rate was again above the 60 per cent mark on early results.

“This steady performance has been highly anticipated, serving as a critical indicator of market health following the notable surge of Self-Managed Super Fund (SMSF) buyers that drove activity last week,” he said.

“Beyond the headline clearance figures, the underlying engagement on the auction floor is equally encouraging. This week's data indicates both registered bidders and active bidders are consistently averaging above two per auction.

“This level of participation highlights that there is still a healthy depth of committed buyers who are actively willing to compete for the right properties. 
“When this steady auction activity is paired with the Reserve Bank of Australia's recent decision to keep interest rates on hold earlier this week, a clearer picture of the current property landscape emerges.

“The market is showing strong signs of stabilising and leveling out. Rather than experiencing extreme fluctuations, we are seeing a much more balanced environment where vendors' expectations and buyers' budgets are increasingly aligning on price.”

10 Tench Court, Mill Park

Sold under the hammer for $875,000

Four bidders

Lead agent/auctioneer: Nick Petrovski - 0412 838 020

Ray White South Morang

“It was originally their family home and they had it rented out for a while but then decided to sell,” he said.

“We had three first home buyers and one downsizer with the winning bid going to a first home buyer.

“It’s been a bit of a mixed bag but generally our clearance rates have been quite strong.

“Inspection numbers are increasing and as a result so has enquiry.

“Most of our auctions are reaching reserve, if not a little bit over.”

27 Sellars St, Watsonia

Sold under the hammer for $795,000

Three registered bidders, two active bidders

Lead agent: Vito Trentadue - 0434 813 100

Ray White Craigieburn

“We started with a vendor bid at $680,000 and it was slow until $735,000. We called it on the market at $740,000 and then it went up by $50,000, mostly in $2,500 bids,” Mr Trentadue said.

“The buyers were a young couple, it wasn’t their first home but it was the first home they were buying to live in together.

“The seller (picbuilt the home in the 1960s and he has owned it ever since. He raised his children there and now he has grandchildren and he’s decided it’s time to downsize.” 

BRISBANE

Ray White Queensland head of auctions Tom Gunness said it was another busy week across the sunshine state’s auction floors, with 154 scheduled auctions and a preliminary clearance rate sitting just under 50 per cent.

“The market is responding positively to the RBA’s recent decision to hold interest rates, with a greater sense of ‘normality’ beginning to return to the decision-making of both buyers and sellers,” Mr Gunness said.

“However, one common theme is becoming increasingly evident: buyers are spoiled for choice. Across our group, we are currently carrying 53 per cent more listings than this time last year, with approximately 4,600 active properties across Queensland.

“With more stock available to buyers, competition for individual properties can no longer be taken for granted.

“When momentum is no longer a given, it becomes our responsibility to create it. That means actively driving buyers to properties, generating offers and creating the level of engagement required to give our vendors the best possible opportunity to transact.

“The results from this week’s auction campaigns demonstrate the impact of that approach. Inspection numbers have remained strong, written offers are being generated, and registered bidder numbers have held steady at around three bidders per auction.

“In a market with increased choice, the sales process matters. It is our job to create urgency, manufacture competition and give buyers a compelling reason to act.

“The market may be finding a greater sense of normality, but momentum will not simply arrive at our doorstep. It has to be created.” 

Ray White Collective had 11 properties go under the hammer at the in-room event at the Calile Hotel. The event saw a clearance rate of 54.5 per cent, with more than $15 million worth of property sold.

The top result for the event went to agents Brandon Wortley and Breyton Hammond who sold 60 Union Street, Clayfield under the hammer for $3.7 million.

Mr Wortley and Mr Hammond also had another notable result, selling 79 Gresham Street, East Brisbane, under the hammer for $3.311 million.

“We had a full room at the Calile. If anyone is asking questions about what’s happening in Brisbane they need to pay attention to what’s happening here and not in Sydney or Melbourne,” Ray White Collective principal and auctioneer Haesley Cush said.

“Lot 1, Gresham Street, was an explosive auction with really strong and loud buyer engagement.

“The middle part of the market in Brisbane is in great shape.

“Buyers bidding in winter are making the smart decision because people waiting for spring will find it’s a lot more competitive.

“It’s been three months since the budget and buyers can’t wait any longer.” 

ADELAIDE

Ray White South Australia chief auctioneer John Morris said there was no hiding from the fact the Adelaide market was changing, but changing markets were exactly when the right method of sale mattered most.

“Last week, the reported auction clearance right across South Australia fell to just 47 per cent, but at Ray White, we were closer to 60 per cent - a significant difference in a market where every competitive advantage counts.

“And buyers have not disappeared. We're still seeing bidding at 90 per cent of our auctions, which tells us there's demand out there. Buyers are simply becoming more considered about what they're prepared to pay.

“Interestingly, 52.5 per cent of auctions across South Australia last week were Ray White auctions, continuing a trend we've seen consistently over the past few months.

“And I think that says something important - when the market gets tougher, some agents shy away from auction because they're worried a property might not sell under the hammer. At Ray White, we embrace it because auction isn't just a strategy for a booming market.

“In a changing market it gives us transparency, competition and, importantly, a clean, clear, and unconditional contract for our sellers.

“The market might be changing. Our job, it's to change with it and keep getting better results for our clients.”