The mid-winter auction market continues to fire with strong buyer activity across the country. Despite higher interest rates and high inflation, which is mostly being driven by price rises on non-discretionary goods, auction clearance rates have rebounded.
Is stock “piling up”, as is so widely reported? Ray White has strong levels of new stock coming to market, in line with last year.
The group’s total stock on the Australian market is up about 17 per cent from last year but still below where it was two years ago. So the headlines are alarmist. Stock is increasing but trending up towards longer term averages.
Ray White had 363 auctions scheduled for this Saturday around Australia, with another 615 booked next week in the winter school holidays.
So far in 2022, the group has had 13,555 auctions scheduled for the first half of the calendar year. That's 19.6 per cent higher than 2021, which was the biggest auction year ever on record.
Today the leading group recorded a preliminary clearance of 66 per cent under the hammer today, with 3.7 average registered bidders and decent crowds recorded in all markets. Over the week, the group cleared 64 per cent.
Adelaide finished with a 64 per cent clearance with Sydney on 62 per cent, while Melbourne cleared 76 per cent on the day, and Brisbane cleared 57 per cent today.
Sydney
Ray White NSW Chief Auctioneer Alex Pattaro said it was a typical winter selling weekend. “We saw less activity across our properties, though good properties are still obtaining higher numbers of interested buyers and obtaining the best prices,” Mr Pattaro said.
“Property prices are still holding strong, especially in affordable suburbs. We are expecting less auction volume to come to market over the coming weeks compared to previous years, which could make a great opportunity for sellers to capture a higher pool of buyers, which may result in better prices.”
Ray White Surry Hills Director Shaun Stoker - 0424 172 217
Sold under the hammer for $3.285 million
7 registered bidders, 5 active bidders
Auctioneer: James Keenan, Ray White
This was the top auction sale for the day across the leading group. Mr Stoker said it was an amazing auction. “It was like the good old days!”
Ray White Eastern Beaches Lead agent: Nicholas Wise - 0410 121 533
Sold under the hammer for $3.040m
4 registered bidders and 3 active
Auctioneer: James Hayashi, Ray White
There was a crowd of 60 people who came to see this classic semi-detached home, on a generous 306sqm parcel near Clovelly Beach, sell for $40,000 over its reserve at $3.040 million. The local bidders opened at $2.50 million and then the auction travelled up in $100,000, and then $50,000 and $10,000 increments. “It was a great auction, everyone was so happy with the result,” Mr Wise said.
20 Bishop Avenue, West Pennant Hills
Ray White Cherrybrook | Thornleigh | West Pennant Hills Lead agent Giuseppe Murace - 0408 009 963
Sold under the hammer for $2.560m
11 registered bidders and 7 active
Mr Murace said there was a large crowd watching on to see seven active bidders battle for the keys of this 15-year-old family friendly five bedroom home.
“All the bidders were from the Hills and Hornsby area. This house is on the best street in the upper West Pennant Hills area, it’s a premier location.”
The bidding opened at $2.1 million, and travelled in $50,000 increments to $2.25 million where one bidder lobbed a $150,000 bid to try and knock all the other bidders out.
“Then there were two bidders who pushed the price to $2.560 million.” A local family has bought the keys, and the sellers are downsizing to be closer to family in Wahroonga.
Ray White Punchbowl Lead agent John Yatman - 0423 344 868
Sold under the hammer for $2.150m, reserve was $1.650 million
13 registered bidders, 6 active
Auctioneer: Alex Pattaro, Ray White
“The Mansion” was built in 1951 and has been tightly held by the same family for 71 years. It's a time capsule complete with internal spiral staircase and the updated kitchen has “Versace-style” splashbacks.
“This 10 bedroom family home was built for a doctor who worked at home originally and it expanded with the family,” Mr Yatman said.
“Bidding started at $1 million and 3 bidders carried it all the way up. A lady bought the home for her family. It’s a big day for the sellers, and everyone is over the moon.”
Despite the temperature dropping it has been another busy auction week across Melbourne.
Melbourne
Ray White Victoria and Tasmania CEO Stephen Dullens said the number of auctions continues to be high.
“It’s been another busy week of auctions, with just under 200 Ray White auctions scheduled across Victoria this week, which is roughly the same number as last week, before we see a slightly quieter few weeks ahead with school holidays commencing,” he said.
With recent interest rate rises and some uncertainty in the global economy, the overall real estate landscape is returning to a more balanced level.
“While we’ve seen much disruption in the global economy over the last few months, particularly with inflation on the rise, we are hearing from our customers that the safety of real estate investment continues to be appealing,” Mr Dullens said.
“Whether this is a property to make the family home or as a potential investment, our customers are reiterating that the relative stability and predictability of real estate compared to other asset classes is helping drive confidence to continue on their property journey, as we can see from the sustained strong results.”
Ray White Carnegie Lead agent: Jin Ling - 0457 777 712
Sold under the hammer for $1.501 million
18 registered bidders, 5 active bidders
Auctioneer: Matt Condon, Ray White
Mr Ling said the property was sold under competition with five bidders for $1,501,000 in front of a crowd of 80 in attendance.
“We had over 100 groups view the property throughout the campaign, 34 contract requests and 18 registered bidders. We were presented or asked whether offers would’ve been taken prior to the auction many times but stuck to our guns and were rewarded,” Mr Ling said. This was the highest number of bidder registrations across the group today.
Ray White Oakleigh Lead agent: Leigh Kelepouris - 0422 283 480
Sold under the hammer for $1.625 million
5 registered bidders (one bidder online from London, and one in Sydney)
Auctioneer: Robert Cincotta, Ray White
It was a great hybrid auction today in Northcote where a bidder in London opened the auction for 135 Separation St at $1.420 million. There was also another bidder online from Sydney, someone who was going on a boat cruise.
“It was very slow to start and didn't get moving until there was some competition. The property was announced on the market at $1.6 million and sold at $1.625 million,” Mr Kelepouris said.
There were 35 people watching on in the backyard.
The sellers were over the moon with the result. They have bought another house to upsize into with their teenagers.
Ray White Oakleigh Lead agent: Nick Strilakos - 0403 510 712
Sold under the hammer for $1.330m, reserve was $1.080 million
7 registered bidders
Auctioneer: Matthew Condon, Ray White
Mr Strilakos set a street record when he sold this custom creation today in Rowville for $1.330 million. “This house was stunning at every turn, an exceptionally renovated home,” he said.
Ray White Manningham agent: Harry Lai - 0402 638 076
Sold under the hammer for $1.650m
1 registered bidders and 5 active
Auctioneer: Andrew Freeman, Ray White
Mr Lai said bidding for this brand four bedroom residence opened at $1.4 million and was very slow to move up to $1.6 million. The house was eventually called on the market fqt $1.646 million and finally sold at $1.650 million.
“It was a long auction, roughly 35 minutes with all local bidders. The winning buyers are downsizers,” MrLai said.
“We are still selling, but we are in a new phase of the market and buyers have a lot of opportunity now.”
Brisbane
Ray White Wilston Lead agent: Alistair Macmillian - 0410 636 221
Sold under the hammer for $2.5 million
5 registered bidders, 3 active bidders
Auctioneer: David Treloar, Ray White
Mr Macmillian said this home was on one of Grange’s finest streets, with the 'Kedron Brook' literally 100m away. “This is an absolutely stunning home that has been created for family living with an expansive open plan ground floor living and dining areas flow effortlessly out to a large north east facing yard.” he said.
“It’s a five year old home and all bidders were locals all upgrading and the couple who won the auction are from Stafford Heights.”
Ray White Annerley Lead agent: Geoff Sellars - 0423 159 423
Sold under the hammer for $1.6 million
4 registered bidders, 3 active bidders
Mr Sellars said there was a crowd of 50 people watching on and all the buyers were locals from Annerley. “It’s a great result, we had 45 groups through during the campaign and this is the second highest sale price for a 400 sqm block in Annerley ever,” he said.
Ray White Annerley Lead agent: Geoff Sellars - 0423 159 423
Sold under the hammer for $947,000
9 registered bidders, 5 active bidders
Meanwhile later in Fairfield, downsizers battled over this freestanding townhouse; which sold for $947,000. Mr Sellars said an investor from Lota sold their two story house to a local couple who were looking to downsize.
“As much as it’s a cliche, good quality stock is still getting good results. Well presented and renovated places are doing well. Units and apartments are still active with first home buyers but many investors are still waiting to see if prices ease.”
“Those were the first two rate rises we’d had in 11 years and now people are holding back a bit. But rates are only where they were in pre-COVID in 2019 and prices are up 20 per cent or more!”
Adelaide
Ray White South Australia Chief Auctioneer John Morris said that while there may be talk of a downward trend in property sales throughout Australia, Adelaide was seeing no such evidence. “Buyers are still out in force. And while registrations are down slightly, participation in bidding remains very, very strong. We may not be sailing past the reserve as we were in 2021 or even early 22 but the hammer is still dropping on a regular basis,” Mr Morris said.
“Of the 177 auctions scheduled to go ahead throughout South Australia this week, some 35 per cent of them proudly sport a yellow signboard. So far 2022 has consistently seen our auction share of above 30 per cent.
“Last week CoreLogic reported a clearance rate of 67.6 per cent for Adelaide while Ray White reported the same metric at 75 per cebt. This means that if you are going with a non Ray White agent, you've got less chance of selling under the hammer on the day.
“In the last eight days, I've sold 15 out of 16 properties under the hammer, with an average of eight registered bidders. So is the market slowing down? Certainly doesn't seem to so from my vantage point.”
Ray White Norwood Lead agent: Stefan Siciliano - 0403 171 489
Sold under the hammer at $875,000, reserve $850,000
13 registered bidders, 4 active
Auctioneer: John Morris, Ray White
Mr Morris said the bidding started at $750,000 and travelled up to $875,000, and in the end it was down to $1000 bids.
“It was an investor selling and a local buyer from Campbelltown who won the keys. We are not seeing as much active bidding but we are definitely still selling,” he said.
Ray White Glenelg Lead agent: Samuel Paton - 0401 757 819
Sold under the hammer at $980,000
10 registered bidders
Auctioneer: Rod Smitheram, Ray White
Mr Paton said his sellers Michael and Georgina Tape (above) were “stoked” about the result. With their four children now having left home, the empty-nesters are downsizing and put their five-bedroom home in Adelaide’s Marion.
“The buyers were a local Marion couple upsizing. Everyone is thrilled with the auction result,” he said.
Ray White Norwood agent Reece Pilgrim - 0437 776 409
Sold under the hammer for $665,000, reserve $600,000
12 registered bidders, 4 active
Auctioneer: Sam Grover, Ray White
Mr Pilgrim said there was a crowd of 80 people who came to watch the auction of this comfortable three bedroom brick home.
“They were all local bidders, and a local family who had been looking for a while to buy into the location were the winners today. It was a good campaign with 60 groups through and our office is still recording a very strong clearance with high numbers of active bidders,” he said.
