The real estate auction market had another strong day across Australia with some very determined active bidders in the new world of social distancing, according to Ray White.
The leading auction house, that conducts one in four auctions across Australia and New Zealand, booked a preliminary national clearance rate of 63 per cent of its 338 scheduled auctions, slightly down from last week but well up on the 18 month average.
The group has been encouraged by the use of its digital registration cards, digital paddles and the uptake of its ‘conscious contact’ campaign while adhering to social distancing rules to assist in flattening the curve.
Ray White Group Managing Director Dan White said the most important part of the strong week of activity was that “we were able to provide a safe environment for our customers and members”.
“We are operating in a new way yet we are still creating the same competition for our vendors and delivering great outcomes,” Mr White said.
“The housing market is currently holding up extremely well, considering the incredible developments both locally and internationally.
“We aren’t assuming anything and like everyone else, and we don’t have a crystal ball.
“But for now, we do know that current market activity, record low interest rates, a strong banking system, and the community’s faith in the housing market, especially in uncertain times, should give all homeowners confidence in the value of their homes."
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Ray White NSW Chief Auctioneer Alex Pattaro said there was no doubt crowd numbers were down a tad this week given the heightened awareness of social distancing although quality buyers still turned up.
“We saw an average of five registered bidders per auction with three of those active. Ray White has taken great measures to ensure that our open for inspections and auctions are as safe as possible,” Mr Pattaro said.
“Facebook Live and other live streaming platforms are providing an avenue for buyers to watch the real time price action, should they not wish to attend in person.“
In glorious North Narrabeen at 27 Oak St, Ray White Warriewood principal Paul Franks sold this modern single level four bedroom brick home for $2.142 million. There were three registered bidders which helped push the price past it’s reserve of $1.95 million.
“Our happy buyer is a local from Collaroy and I am so happy to see him secure his dream house after looking for a while. Lots of active buyers who are sick of looking around are very serious but we are not sure what’s around the corner. My sellers are simply stoked. They are moving their family of five children to Coolum on the Sunshine Coast.”
Ray White Upper North Shore Partner Matt Bolin today sold 84 Kedumba Cres, Turramurra three registered and active bidders in front of a crowd of 50 people outside. The property sold within its price guide of $2.4m to $2.640m. “We had 45 groups through the property during the campaign. Everyone was cool about social distancing and we effectively separated all the buyer groups and onlookers into teams. We still had lots of neighbours come out and there was good energy and it felt totally normal. Lots of neighbours are potential sellers and they were all happy to see so many buyers as supply is still low.”
Ray White Wetherill Park agent David Perco today sold 11 Lavender Place, Fairfield West in front of a crowd of 50 people outside for $758,000 with a whopping nine registered bidders, and five of them active which pushed the price up from its open of $650,000.
“We held the auction outside in the sunshine and half the neighbourhood came to watch. There’s been so much change in this market in a lot of ways but the vendor received $50,000 more than the feedback during the campaign so they are so happy. I announced at least four times to tell people to move apart and respect the social distancing rules.”
Ray White Oatley principal Matt O’Shea today sold 88 Marine Drive, Oatley for $2.310 million on a glorious day in front of a crowd of 40 people. There were four registered bidders, all locals in the area. This is the top sale under the hammer in the group today.
“Everyone was cool with the new social distancing rules and everyone moved apart. All four registered bidders were active. The crowd was only 40 people and to be honest a year ago we would have had a crowd of 120 people as the neighbours would come for a look and a sticky beak. From now on my office will Facetime Live every auction so people can watch along at home if they choose not to come out.”
Mr O’Shea’s vendor is in her 90s and moving to a self contained flat and the new buyers (pictured above) are a local family who have been looking for a waterfront home.
“This is the 22 unconditional sale my office has made this year, which is double what we did at the same time last year. We have been through worse and we’ll get through this. Quality determined buyers and sellers will always transact and the drama will pass in time - we just don’t know if it’s going to be 2, 3 or 6 months time.”
The highest number of registered bidders today across the group was in western Sydney at 18 Solomon Ct, Greenacre where Ray White Bankstown agent Anthony Roumanous attracted 18 registered bidders to this tidy four bedroom brick and tile home which sold for $1.4 million in front of a large crowd of 85 people.
“It was a great result which was $300,000 over reserve and my owners are over the moon,” Mr Roumanous said.
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Ray White Victoria Chief Auctioneer Matt Condon said there was an increase in auction volume this week and crowds remain strong yet spread out.
“We noticed buyers were often hesitant but once the auction kicked off buyers were bidding with strength and confidence. We are continuing to see competitive bidding across the network and it’s great to see so many great auction results for Ray White Victoria.”
In Melbourne, Ray White Carnegie Partner Josh Hommelhoff today sold 2/8 Paget St, Hughesdale for $1.170 million in front of a crowd of 30 people. “There would have been a bigger crowd in normal circumstances for sure. I have done back to back open homes from 9am to 4pm with an auction in between and actually only had one person asked about our new protocols. I’ve had good numbers at all my opens today.”
The buyer lived across the street, and he owns a few other townhouses close by and rents them out on AirBnB. “The townhouse was built 15 years ago, all with double garages. There were four active bidders and it opened at $900,000 and it moved up in $20ks to $10ks and it sold at $1.170 million. My vendors are downsizing to be closer to family.”
Ray White Craigieburn agent Daniel Diamantopoulos (above) today sold 31 Kelway Street, Craigieburn to local buyers for $640,000 in front of a crowd of 40 people.
It was a very successful day in the field for Ray White Gladstone Park Director and Auctioneer Phillip Mercieca who said his office sold four from five properties for their vendors - some who who had all been nervous ahead of their auctions.
Among them, at 29 Bellini Drive, Greenvale (pictured above at the signboard with happy buyers) agent Vito Trentadue sold the property for $695,000 . “It wasn’t a huge crowd but the opening bid was $580,000 and it moved up very quickly to $650,000 and then it shot to $695,000. The buyers were local first home buyers, while the sellers are downsizing to an apartment," Mr Mercieca said.
“Nearly all of our sellers today were hesitant about going to auction and we trying to keep them all calm. But interestingly there was definitely a sense of panic buying today. Buyers just wanted to ‘buy now’ for a fear of lack of stock coming up.”
At 8 Conifer Close, Gladstone Park the vendor - an agent for a different company - had his doubts about going to auction today given the week's events. “The reserve was $610,000 and there was at least 70 people there and three bidders who pushed the price to $675,000. The vendor was stoked as a week ago he would have taken an offer of $620,000.”
It was a good day in the capital, with five registered bidders, and three were active, among the crowd of 30 people at 12 Millen St, Hughes, ACT. Ray White Canberra agent Nicky Symon offered everyone wipes, fresh pens, gloves and hand sanitizer but no-one used it. “Everyone respected the extra social distancing in the crowd. The new buyers of this deceased estate are a local family. I definitely lost a few bidders due to coronavirus but we had created a lot of competition and still had 55 groups during the campaign.”
In South Australia, at 14 Hill St, Burnside, Ray White Norwood agent Brandon Pilgrim said there were nine registered among the crowd of 45 on the street.
“The property sold for $762,500 for my vendor who has moved interstate to Melbourne. Everyone kept their distance and respected the idea of social distancing at the auction. The new buyers are locals to the area. In fact, it was business as usual today. I had seven open homes today and they were all well attended and nothing out of the ordinary.”
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Ray White SA Chief Auctioneer John Morris said crowds, agents and auctioneers may be social distancing themselves but “buyers are getting down and dirty and making aggressive moves” to ensure lots of properties are selling prior to auction.
“The auctions I have attended today have been great and bidding is prevalent at all of them. We have 26 auctions scheduled for next week. Stay safe, stay healthy and in the words of Mr Spock, live long and prosper.”
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Ray White Queensland Chief Auctioneer Mitch Peereboom said today was the first real test of the market to see if there was any effect from the economy but “it did not deter the buyers from bidding and participating at auction”.
“The market is still confident with many great results this week at our midweek auction events with plenty of people still watching too,” Mr Peereboom said.
One of today’s standout auctions was on Brisbane’s northside where Ray White Aspley agent Matt Morgan said people were more interested in getting out of the sun and into the shade at his auction at 5 Birra St, Chermside West which sold for $745,000 to a local family from Boondall.
“When people came to the door we spaced them out. Opens were steady throughout this campaign but the result is considerably higher than any feedback received during the campaign.”
“They are over the moon ecstatic with the result.” There were five registered bidders and three of them were active in the auction.
