Property market update: Auctions are trending back

Property market update: Auctions are trending back

The return of live auctions in some states and territories this month is the best news for Australia’s property industry since the coronavirus crisis ramped up in mid-March. 

Auctions appear to be trending back to normal in Sydney and Melbourne, but it will take some time for numbers to get back to where they were prior to COVID-19 shutdowns.

When live auctions were banned due to the health crisis, the number of auctions dropped dramatically with a double hit coming from a broader drop in listing volumes.

Yesterday, there were 137 auctions scheduled in Sydney and 110 scheduled in Melbourne, representing a significant drop compared to this time last year – and auction numbers were already very low due to the 2019 federal election.

While clearance rates only look at a very small portion of the market, the big spike in the New South Wales clearance rate last weekend to 77% is perhaps proof that buyer activity remains strong and that buyers are more comfortable buying in-person than online. This theory is also supported by increased levels of buyer enquiry and search activity on realestate.com.au.

This weekend, the clearance rate hit 72% in New South Wales and 70% in Victoria.

Auctions are trending back