Buyer activity didn’t drop with the temperature today as May starts to close out with a bang.
With the federal election and rate rise announcement now old news, many agents reported stronger buyer sentiment today.
Leading auction group Ray White recorded a 73 per cent national clearance rate. Meanwhile, there were 4.5 registered bidders on average attending Ray White auctions across the country and 2.9 average active bidders.
This is still historically high on pre-pandemic numbers and as we head into winter, cooler days traditionally mean a cooler market.
Proving the auction method is still the best way to go, even in today's market, sellers who held out and sold at auction this week made almost 12 per cent more on average than if they’d sold prior.
Listings fell by 10 per cent in April meaning May began on the leaner side. The lack of new stock on the market created a challenge for buyers to find quality property, meaning highly desirable properties were still well sought after. Heading into June, listing authorities (properties listed but yet to go live) are still down but only by just over two per cent compared to last year, pointing to a bit more choice for buyers next month.
Ray White Hope Island agent Thomas Fliniks had the top sale of the day. Mr Fliniks sold 7631 Fairway Bvd, Hope Island for $2.855 million to local buyers who saw the property for the first time today.
Two Adelaide auctions and a Melbourne auction tied for the highest number of bidders, 13A Shafton St, Huntingdale, 3 Fern Ave, Lockleys and 25 Davalan Dr, Munno Para West all attracted 19 registered bidders each. The Lockleys property sold through Ray White Henley Beach principal Anthony Fahey for $1.15 million while Ross Whiston of Ray White Gawler | Willaston sold the four bedroom Munno Para West home for $647,500. In Melbourne, the Shafton St property sold for $917,000 through Ray White Clayton principal Michael Renzella.
SYDNEY
Ray White New South Wales chief auctioneer Alex Pattaro said the current auction data would suggest this is the new normal.
“Clearance rates inside the 60 per cent band and an average registered bidder count of roughly four people per auction is still positive sign for sellers,” he said.
“The bidders that are attending auctions now are ready to make decisions and the sellers within the marketplace need to remember that the prices we are obtaining at auction are substantially higher than they were 18 months ago.”
4 Grantham Place, Chipping Norton
Ray White Liverpool, Catherina Khouzami - 0423 355 449 and Luke Currenti
Sold for $1.85 million
15 registered bidders, six active bidders
Auctioneer: Tim Snell, Ray White (pictured above)
“The buyers were locals upsizing from their current house. This house was actually developer Jim Masterton’s home. He built it himself and this is only the second time it’s been sold,” Ms Khouzami said.
Ray White Parramatta, Michael Mustapha - 0420 997 897 and Broderick Wright
Sold for $1.49 million
Six registered bidders, two active bidders
Auctioneer: Paul Wright, Ray White
“Quality homes are still selling, it just depends on what kind of property it is and where it’s located,” Mr Mustapha said.
“It’s not quite at the heights of last year but for where the market is at right now this is a good price and up on pre-pandemic numbers. We’re seeing a lot of buyers wary of overpaying and also factoring into their budgets future rate rises.
“The sellers (pictured above) have owned the home for about 40 years and are now selling to relocate to the coast. The buyer was actually one of the neighbours as the house has sentimental value to them.”
Ray White Eastern Beaches, Cristian De Nigris - 0466 110 253 and Angus Gorrie
Sold for $1.261 million - $161,000 above reserve
Five registered bidders, four active bidders
Auctioneer: James Hayashi, Ray White
“The buyer was a young man looking to buy something he could renovate for him and his young daughter. It was a deceased estate, the seller was almost 102 years old,” Mr De Nigris said.
“A lot of first home buyers came through, I’d say it was probably an 80/20 split between first home buyers and investors.
“It’s an entry level property into the Coogee market. The property has a lock up garage which is rare for that street so it made it a bit more special.
“I’m finding any sort of property that has a unique feature is still selling well. The market has slowed down in the area but anything that has something out of the ordinary is still popular. In this case it has the potential to add value and being only 100m from the sand with parking.”
Ray White Auburn, Sezer Yunus - 0431 264 472 and Ahmad Faizi
Sold for $1.088 million - $118,000 over reserve
Six registered bidders, two active bidders
Auctioneer: Alex Pattaro, Ray White NSW chief auctioneer
“The two active bidders were very motivated but in the end the winning bidder (pictured above) was a lady whose mum already lives next door. The property was a deceased estate and the family were all at the auction and very happy with the result,” Mr Yunus said.
“At the moment the market is still strong in Auburn, we definitely can’t complain. We’re not seeing buyers pull back much at all.”
MELBOURNE
Ray White Victoria and Tasmania CEO Stephen Dullens said with the election distraction now behind us, activity in the market saw a sharp increase.
“We know that whenever there is a federal or state election, customers watch with interest and activity in the market slows,” he said.
“With over 220 Ray White auctions scheduled across Victoria this week, prospective buyers have wasted no time getting back to auctions and open homes in search of their next property purchase.
“Preliminary results so far this week show in excess of three active bidders per auction, the highest level since before the election campaign commenced. With close to 200 auctions scheduled across Victoria next week, we continue to see strong activity and strong demand right across the market.”
9 Lyons St, Mount Waverley (pictured above)
Ray White Glen Waverley, Darryl Wickham - 0410 554 779 and Alan Zhang
Sold for $1.73 million
Five registered bidders, four active bidders
Auctioneer: Matthew Condon, Ray White Victoria chief auctioneer
“This was an interesting one, the home was built in 1956 and has been with the same family ever since. The man who bought it has also been in the area for a while, he grew up there and is looking to do a subdivision down the track,” Mr Wickham said.
“We’ve still had a good number of attendees at auctions and open homes but there are just a few people sitting on their hands. It’s a bit harder to get people to make a decision.
“It’s uncertainty, people are wondering what a Labor government looks like to them but the smart buyers are seizing the opportunity of a lull in the market.”
Ray White Forest Hill, Shaun Perumal - 0426 265 400 and Hugh Francis
Sold for $1.688 million - $88,000 above reserve
Five registered and active bidders
Auctioneer: Hugh Francis, Ray White
“The buyers (pictured left) were a young couple who are currently living in an apartment in Southbank,” Mr Perumal said.
“The sellers (pictured right) have been there for more than 20 years, raising their family. It’s a beautiful home and they’ve looked after it well but it’s time to move on and downsize.
“Before the election buyers were not sure about what was going on in terms of buyer policies from the major parties but now it’s over they have more confidence.
“The market is still reasonably strong if it’s a good property and presented well. We are still able to get good results.
“Sellers are confident looking at the social proof that comes with auctions. Seeing a home go $88,000 above reserve means they are still looking at a good market.”
34 Pixel Circuit, Coburg North
Ray White Preston, Ian Dempsey (pictured below with the sellers) - 0447 556 210 and Ben Hadden
Sold for $871,000
12 registered bidders and eight active bidders
“It was a busy auction with between 40 and 50 people attending. The buyers (pictured above) had just flown in from Sydney and missed out on two auctions this morning, they were planning to fly back home tonight,” Mr Dempsey said.
“We did see a stumble in the market during the interest rate rise and election period but it seems to be loosening up this week, there’s definitely more activity than the last couple of weeks.
“Good, renovated stock is still selling well but there’s less activity on unrenovated stock.”
BRISBANE Ray White Queensland chief auctioneer Gavin Croft said it’s been a very mixed day.
“At some auctions, you've got this incredible strength that really drives behaviour and bidding then at others you can see the market transitioning,” he said.
“To say buyer behaviour over the last four weeks or so hasn't changed would be incorrect.
“I think we're seeing buyers a little bit more measured in their approach in some regions and it was certainly on show today.”
2 Taylor St, Balmoral (pictured above)
Ray White Bulimba, Scott Bould - 0422 204 837 and Jonathan Peck
Sold for $1.92 million
Three registered bidders, two active bidders
Auctioneer: David Farrell, Ray White
“We received interest from a range of different buyers. We had the usual group of local families all looking to either upsize or downsize but we also saw interest from expats, interstate buyers including an investor who flew up from Sydney and an international buyer couple from the UK,” Mr Bould said.
“The seller was an investor living in Sydney who felt it was the right time to move on.
“At the start of the month we were seeing buyers hitting the pause button to wait for the results of the election but now it’s over they are out in force and back on the hunt for a property.
“Interest rate rises aren’t affecting the market from what we’re seeing. There still appears to be a lot of confidence in our area and the Brisbane market as a whole.”
Ray White Wilston, Brooke Copping - 0431 067 766 (pictured above with the sellers)
Sold for $1.46 million
12 registered bidders, three active bidders
Auctioneer: Phil Parker, Ray White
The home was architecturally designed by respected Brisbane architect Kerry O'Rourke. It was the first house he designed as an architect and he is now in his 70’s. He came to view the home with the original owner while the two brothers (pictured below left) whose parents originally commissioned the house attended the auction.
“We’re still seeing really solid interest in the market, people are talking about it slowing down but I think there’s still demand for well located, good quality properties,” Ms Copping said.
“The auction is a good display of where the market is at. With 12 bidders and a sale price over the owner’s expectations, you can’t get much more evidence than that.
“The buyer was a lady (pictured below right with family), originally from Brisbane, moving back from Melbourne to be closer to her family.”
ADELAIDEAs we enter the final weekend of auctions for autumn, Ray White South Australia chief auctioneer John Morris said the weather may be cooling off but the results are still simmering along as impressively as they have done throughout 2022.
“Last week, CoreLogic reported a 70 per cent clearance throughout the state while our members reported 87 per cent which is staggering for the same metric,” he said.
“This is made even more impressive by the fact that we called 31.2 per cent of all auctions throughout South Australia, three times that of our nearest competitors.
“This proves yet again, if you want the job done and you want great results at auction, make sure there's a yellow sign outside your front door.”
3 Fern Ave, Lockleys(pictured above)
Ray White Henley Beach, Anthony Fahey - 0428 641 404 and Samuel Parsons
Sold for $1.150 million - $150,000 above reserve
19 registered bidders, four active bidders
“This market is still very busy, we honestly haven’t seen any drop off. There are still lots of buyers and not enough stock to supply demand,” Mr Fahey said.
“The sellers are a couple who want more yard for their kids so they are building at the moment while the buyers are another couple downscaling from a larger home in West Lakes.”
Ray White Port Adelaide, Nick Psarros - 0400 506 555 and Tony Hvasanov
Sold for $745,000 - $47,000 above reserve
12 registered bidders, six active bidders
“The buyers (pictured above with Mr Hvasanov and Mr Psarros) were a lovely couple with a baby. The sellers (pictured below) were a family who have been there for more than 20 years and have outgrown the house so they are looking to upsize,” Mr Psarros said.
“My market in Adelaide is going well and still busy. Buyer activity depends on the property, A-grade homes are still selling well but those that need renovations are taking longer because a lot of people have been turned off by issues with the construction industry.”
