Melbourne auction review: Monday, 3 December 2018
As we head into the Christmas season, we've been pleasantly surprised by the reasonably strong number of properties up for auction. Usually supply starts to dwindle at this time of year.
In our latest video, Wakelin director Jarrod McCabe says he is still seeing competition at auctions for good-quality properties, but he does expect buyer focus to shift over the holiday period. We might see clearance rates drop a little further, from close to 50% to the low forties.
The auction statistics Jarrod mentions were published by the REIV.
Below is a full transcript of his comments:
"So, we’ve now entered the Christmas period ─ Merry Christmas to everyone!
We saw some interesting results on the weekend, some pretty good competition at a couple of different auctions we attended: a house up in Brunswick and a one-bedroom apartment down in the St Kilda area. Both had reasonable levels of competition given the conditions in the market at present.
And it is interesting that we’re seeing at the moment that the numbers of auctions that are occurring, both in the past two weeks and also the coming two weeks, are hovering around the 1000-auctions-per-weekend mark, which is fairly significant for this time of the year.
Our expectations has been that the market may had softened a little bit in terms of supply, but that’s still reasonably strong numbers coming through.
The clearance rate, well that’s sitting in the high 40s at present and that may well drop even a little bit further over the next few weeks as buyers do tend to change their focus the closer we get to Christmas, so you may well see that the clearance rate starts to drop off a little bit.
Buyers, well, they’re a little bit inconsistent at the moment, as I said, we saw some interesting results on the weekend but having said that there are also still numerous properties passing in.
The clearance rate in the high 40s doesn’t necessarily give you the indication that there’s probably up to 60% or 70% of properties that are going to auction on the weekend are actually passing in. It’s just that a number of them do end up selling on the day and therefore get included in the clearance rate.
So that’s about it for this weekend. I hope you are enjoying a wonderful festive season."