Auctions powered ahead this long weekend following the jolt of the super-sized interest rate rise, with buyers calmly factoring in more hikes to come.
The RBA tightened its monetary policy settings for the second month in a row this week, raising the cash rate target by 50 basis points to 0.85 per cent.
Ray White had 255 auctions scheduled for this Saturday around Australia, with another 348 auctions booked next weekend ahead of the winter school holidays.
Today the group cleared 70 per cent of its auctions under the hammer today, with 4.1 average registered bidders and decent crowds recorded in all markets. Over the week, the group cleared 68.6 per cent, the highest clearance rate for six weeks.
South Australia had an incredible day at 83 per cent clearance with Sydney on 74 per cent. Sydney has recently been recording clearances between 55 per cent and 65 per cent, while Melbourne cleared 75 per cent on the day, and Brisbane cleared 67 per cent today.
Ray White Managing Director Dan White said high turnover was still a hallmark of today’s property market even after the first historic rate rise last month.
“The Australian property market was functioning with high turnover and not too much of a gap between buyers and sellers. It was a big month in May and we did $6.2 billion in sales, up 29 per cent year on year, in a month with a change of government and a rate rise. Willing buyers who bought in May were already pricing in 4-5 interest rate rises so the next rise was to be expected and buyers are factoring in more to come," he said.
"Of course we take nothing for granted but right now we are defying the headlines.”
Ray White New South Wales Chief Auctioneer Alex Pattaro said it was a balanced week for the Sydney property market as “we saw higher than recent average clearance rates and activity at open for inspections has been higher than previously recorded”.
“Activity on auction day suggests buyers are prepared to transact, though at the right price. Sellers on the market, and those that are coming to the market, can take plenty of confidence with what we are seeing.
“Yes, the clearance is down from last year however, we must remember that last year's numbers were well above the long term average whereas now we are seeing more normal and stable numbers.”
Ray White Ryde lead agent / principal: Jason Kiprovski
Sold under the hammer $4.2 million
12 registered bidders, 5 active
Ray White Ryde principal Jason Kiprovski said it was a slow auction to get going. ‘It was very drawn out but we put it on the market at $3.850m and then it travelled up higher. There was a mix of Sydneysiders, developers and family buyers, there was a mix and there was some hesitancy.
“In the last two weeks you can feel the difference. Many buyers say they don’t want to rush and we have been educating our vendors to the change in the market.”
14B Scottsdale Cct, West Hoxton
Ray White Carnes Hill lead agent Trevor Byrne
Sold under the hammer for $1.327m
4 registered bidders and 3 active
Auctioneer: Tim Snell, Ray White
Ray White Carnes Hill lead agent Trevor Byrne said there were at least 30 people outside watching as 14B Scottsdale Cct, West Hoxton sold for $77,0000 above its reserve. “The sellers are very happy and moving away to Wahroonga,” he said.
“There’s still people buying houses, the shy hasn’t fallen in. But there’s not as much urgency and the buyers have more power.”
Ray White Queensland Chief Auctioneer Gavin Croft said buyers appeared more composed and more measured while out to buy this weekend.
“Buyers are more careful and certainly being more considerate in their approach today. I think everyone at the moment is certainly finding their feet, and property 60 days ago is certainly not seeing the same price that they would see today,” he said.
Training the next generation early - Matt Lancashire with his youngest son, Ziggy, 3, and Haesley Cush with daughter Vivvienne, 9.
Sold under the hammer for $4.9m
Ray White New Farm principal Matt Lancashire
6 registered bidders, with 5 active
Auctioneer - Haesley Cush, Ray White
The top sale of the day went to Matt Lancashire, principal of Ray White New Farm in Brisbane who sold 11 Dickson Terrace, Hamilton for $4.9m under the hammer with the cutest ‘auction scribes’ in the business, Ziggy Lancashire, aged 3, and Vivienne Cush, aged 9.
There were six registered bidders and five active bidders, said Haesley Cush, co-owner and auctioneer for Ray White New Farm.
“My seller is over the moon with the campaign and result. This result shows the strength of the Brisbane market. We had six bidders and half of them were locals and half of them from overseas and/or interstate,” Mr Lancashire said.
“The auction opened at $3 million and travelled up quickly in $50,000s to $4.7m where it was a battle between two bidders and it ended up selling to a local buyer for $4.9m.
“Of the eight properties I sold in May worth $35 million unconditionally we have built a database of more than 300 international buyers. Between Sydney, Melbourne and overseas buyers, we have access to a deep pool of buyers interesting in Brisbane’s prestige market.”
Sold under the hammer for $4.115m
Ray White Ascot agent Dwight Ferguson
16 registered bidders, with 6 active
Auctioneer - Dave Treloar, Ray White
Nearby at 24 Sparkes Ave, Hamilton, Ray White Ascot agent Dwight Ferguson signed up a whopping 16 registered bidders to buy the stunning five bedroom executive address less than 200m from the prestigious Ascot State School.
The property sold for $4,115,000 to a local family and the sellers are thrilled with the result.
“The Brisbane prestige market remains in good form,” Mr Ferguson said.
The fast and furious auction opened high at $3.6M, with several interstate and international bidders registered.
During the campaign, Mr Ferguson took more than 180 groups through the property for inspections. “There’s still plenty of activity now and it’s still a good time to be selling,” he said.
Sold under the hammer for $1.555m
Ray White Paddington agent Judi O’Dea
11 registered bidders, with 6 active
Auctioneer - Justin Nickerson
Brisbane got off the blocks early when Ray White Paddington agent Judi O’Dea signed up 11 registered bidders for this stunning three level house at 1 Horsburgh St, Kelvin Grove with some of the best views of the Brisbane skyline. The house ended up selling under the hammer for $1.555 million to buyers relocating from Sydney.
“The winning bidder was a Sydney buyer couple who are downsizing to Brisbane. My sellers have lived there 12 years and done two renovations during that time, Ms O’Dea said.
“I think some of the best buying in Brisbane is from Kelvin Grove to Herston, the fringe ring is really exciting as it’s so close to the city and all within walking distance of the Victoria Park development which is going to be incredible.”
Ray White South Australia Chief Auctioneer John Morris (pictured in action today) said despite the long weekend, there was certainly no shortage of auctions around the state with 150 going ahead this week. “Some 36 per cent of these auctions were proudly displaying the name of our founder, Ray White, which is four times that of our nearest competitor. Last week we had a clearance rate of about 80% with six registered bidders per auction and over three of those participating.
“This week we headed into the weekend with a 92 per cent clearance.
“Right now throughout May, Ray White cleared at 91 per cent of all auctions that went ahead while our competitors sold 68 per cent of properties that were taken to auction meaning that if you're not using a Ray White agent to take your property to auction, you have a smaller chance of selling on auction day.
“Ray White trusts and understands the auction process intimately.”
Ray White Woodville lead agent: Peter Kiritsis
Sold under the hammer $940,000
14 registrations, 6 active
Ray White Woodville lead agent: Peter Kiritsis said the auction opened at $750,000 and sailed through its $900,000 reserve.
“The owners bought the house 3.5 years ago for $535,000 so they have had a good head start in life now,” he said, pictured above with the happy buyers.
There was a Melbourne bidder and the rest were young locals bidding today.
“Interstate enquiry had dropped off in the early months of this year but I think a lot of Melbourne and Sydney people have come back as we look like a safe bet, with less volatility,” he said.
1-5 Martins Rd, Salisbury Downs
Ray White Norwood Lead agent: Stefan Siciliano
Sold under the hammer for $2.710m
8 registered bidders, 4 active
Auctioneer: John Morris, Ray White SA chief auctioneer
Ray White Norwood agent Stefan Siciliano said there were three bidders from interstate today but a local developer was the winning buyer. “We had bidders from Melbourne and Sydney but we didn’t have any open homes, I literally just saw the property for the first time today myself,” he said.
The long weekend in Victoria has caused the usual slowdown in auction activity, as explained by Ray White Victoria and Tasmania CEO Stephen Dullens with the drop in scheduled auctions.
“The Queen’s Birthday long weekend in Melbourne has resulted in a drop in auction activity after a busy few weekends of auctions,” Mr Dullens said.
“Across Victoria, Ray White have just over 120 auctions scheduled this week - around 40 percent less than last week and around half that of two weeks ago - while next week we’ll bounce back to around 200 scheduled auctions for the week.”
Despite the quieter Saturday, those auctions that did proceed performed at a similar to level of the last few weeks.
“As expected we saw another rate rise by the Reserve Bank of Australia this week. Despite the lower numbers, results and activity levels per auction remained roughly consistent with the previous few weeks,” Mr Dullens explained. “Increasing numbers of buyers are commenting that they are factoring increasing rates into their decision making and remain committed to getting on with the priority journey, with rates still low compared to long-term averages,” Mr Dullens said.
Ray White Ferntree Gully Lead agent/auctioneer Rene Mawad
Sold under the hammer $2.410m, $210,000 over reserve
Four registered bidders, four active
In front of a crowd of 50 people, Ray White Ferntree Gully Lead agent / auctioneer Rene Mawad (pictured) sold this grand masterpiece in the coveted Carrington Estate to a local buyer for $2.410m.
“There were four active bidders and they all bid in the range or over. The bidding started at $1.845m and went through $2.410m, some $210,000 over reserve and my vendors are ecstatic,” he said.
“There was a little bit of talk about interest rates this week but interest rates affect everyone. They are like an even playing field and the fact is there’s still not a lot of stock right now, and winter plays a part in that but sellers need to know it’s still a good time to sell.”
67 Koonung Rd, Blackburn North
Ray White Blackburn Lead agent/auctioneer: Allan Smith
Sold under the hammer $1.290m, $130,000 over reserve
Five registered bidders, six active
Mr Smith, who has called 1000 auctions in his 25 year career with Ray White, said it was a ripper auction at 67 Koonung Rd, Blackburn North today.
“We had five registered bidders and a late one turned up to bid, and as you know there’s no requirement to register in Victoria. The property was put on the market at $1.16m and it ran up from that,” he said.
“We are in ‘a correcting market’ and no-one knows what the future holds but there’s no drastic reductions in price going on, or maybe we are just defying the headlines.
“Vendors price expectations are from three months old when they decided to sell but things have moved on and there is some easing of prices but only 3-4 per cent.
“Auctions are the only social proof we have to determine real time activity and I have sold two today.” The buyer was a local developer, who plans to subdivide the block.
