Another Week of High Auction Clearances

Melbourne recorded a great auction result last weekend with a clearance rate of seventy one percent. Sydney held up last week’s great result with another seventy six percent clearance rate. Thanks to the re-introduction of group inspections and on-site auctions, we continue to see improvement in the major property markets in Australia.

Melbourne saw a house in Mount Waverley being sold for one hundred and twenty thousand dollars over reserve, an outstanding result at an auction that saw quite some spectators, who weren’t let down.

Building further on the property market analysis, during the covid-19 lockdown we saw a significant reduction in activity in the property market. A reduction in demand was being met with an equal reduction in supply as nobody was forced-selling or panic-selling.
For that reason we saw that the house values held steadfast. Looping it back to what we saw last weekend, the significant increase in auction clearance rates can be attributed to an improved customer confidence thanks to the on-site auctions and group inspections being introduced, paired with still a low supply of property.

What I expect to see over the coming weeks is more and more properties being sold on auction which will be met with an increased demand for property and we will therefore continue to see high clearance rates in May and June. I remain optimistic that property values will remain strong in May due to the market sentiment I personally witness on a daily basis.

A great example of this is the conversation I had over the weekend with a client of mine, who is looking to purchase a home and they are fearful for the fact that the house prices will increase in value. So they are not fearful for a collapse in values. In fact, they wouldn’t mind that collapse as it will allow them to purchase a nicer house in a nicer location, but they feel they may have missed their window of opportunity.

So it’s all a matter of perspective, if we fear a collapse, we continue to see information that feeds that fear. If we fear an increase of values, as my clients currently do, we continue to see information that feeds that fear.