Behind the gavel: What auctioneers are observing this spring

Across the country, auctioneers with the firm appeared to agree that a rising tide lifts all boats, as markets appeared to gain positive momentum in at least one key indicator.

In Melbourne, where clearance rates sit at 71 per cent, local auctioneer Andy Reid said that stock was starting to return to the lower end of the market.

“The two pauses in interest rates across August and September have most certainly seen first home buyers breathe a sigh of relief and, as a result, the ‘entry level’ stock priced between $600,000 and $850,000 has finally started to regain some momentum,” Mr Reid commented.

The same clearance rate of 71 per cent in the Northern Rivers area of NSW indicated to auctioneer Mark MacCabe that locals were keen to take advantage of the seller’s market and put their properties under the hammer.

“The high clearance rates suggest that auctions continue to be an effective method for selling properties in the region. Attendance at auctions in the Northern Rivers has remained strong, with a notable presence of potential buyers,” Mr MacCabe said.

On the other end of the spectrum, Canberra’s clearance rate hovering around the 50 per cent mark shows that buyers are being cautious not to rush in, according to Jenna Dunley.

“We are still seeing plenty of buyers attending auctions and many throwing their hat in the ring for their new home,” Ms Dunley said.

“It is interesting to see the clearance rate at an average level even though we have had more buyers back in the market due to what I think is a pause in interest rates. Word on the street is that we may see an influx of stock hit the market as spring blossoms into full bloom, so it would not be a surprise if buyers are waiting for more options,” she commented.

Clarence rates on the Sunshine Coast, meanwhile, sit at 57 per cent, which auctioneer Yianni Mooney said hint at a return of buyer confidence.

“Sunshine Coast buyers are likely comforted by greater certainty around economic activity, continued low unemployment, and the general talk of interest rates having reached their peak.

“Auction prices reached an increased level towards the latter part of the July to September quarter, entirely regaining the price falls of previous periods, despite an uplift in the number of properties coming to market,” Mr Mooney said.

On the Gold Coast, a clearance rate of 61.5 per cent has supported success in the luxury market, with Apollo Auctions presiding over the sale of a $24-million-dollar property on the Isle of Capri that set a record for the most paid for a property at auction in Queensland in August, before it was bested by another Apollo Auctions event where the home went for $24.8 million under the hammer.

Auctioneer Rob Doorey commented that it is clear competition is fierce for the properties that have made their way onto the market at a time when many sellers have been holding back.

“While listings have been tight for agents, this has no doubt lent itself to some nice competitive bidding, high registrations, attendance, and great results for our vendors,” Mr Doorey said.

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