Online auctions are here to stay, as volumes surge this weekend

Australian capitals are set to experience their busiest auction week since late March and their fourth busiest week since CoreLogic records began in 2008.

This week, 3,810 homes are expected to go under the hammer, double the volumes recorded at this time last year.

Continuing the upward trend seen since early October, Sydney is expected to host 1,439 auctions this week – its busiest week of the year. Volumes this week are up 14.3% from last week and 78.8% from the same period last year.

Since the restrictions were lifted in early October, auction volume has increased by 91.1%.

Benson Auctions has 34 auctions booked for this current week – 11 midweek and another 23 on Saturday and Sunday, a combination of online and onsite.

Auctioneer Stuart Benson said this weekend would be his first weekend back to all live auctions at the venue.

“Until last week, my Saturdays and Sundays were a combination of online and on-site, which turned out to be a difficult juggling between my studio, front yards, agent offices, and then backyards. course all over the Hills Shire,” Mr Benson said.

Auctions this week

Source: CoreLogic

Going forward, all weekend auctions would be onsite, he said, while agents would have the option of being online or onsite throughout the week.

“It’s so great to be in front of the crowd again – the banter, the quick wit, the real relationship building and the energy,” Mr Benson said.

“In saying that, online auctions have really become not only fun and exciting, but have proven to be incredibly effective. They are definitely here to stay, there is no doubt.

With inventory surging across the Hills district and north-west Sydney in general, buyers were a bit more discerning when it came to choosing a property, Mr Benson said.

“When options were extremely limited, buyers fought for what was scarce,” he said.

“At the moment, with the options available to them, they are more measured in their bidding. Supply and demand 101.”

According to Mr. Benson, prices seem to have finally stabilized, which is good news.

“The fact that bidders show up at auction only to see everything sell for $300,000 above reserve makes it difficult for the overwhelming majority of buyers,” he said.

“While we still see competition in our auctions and the clearance rate remains robust, buyers now seem to know and feel what properties are worth in this ‘new normal’, so the crazy results are more rare than before.

“They are certainly still happening – just yesterday I sold 54 Nelson Road, Cattai at 11am for $2,601,000, or $301,000 above its reserve.”

Since the lifting of COVID-19 restrictions in early October, auction volumes in Sydney have followed an upward trajectory, while clearance rates have tended to fall.

With its highest auction volumes since late March, Sydney last week recorded its lowest clearance rate since early July, with 71.5% of the 1,259 auctions held with a positive result.

The week before, 1,239 homes went under the hammer, reporting a clearance rate of 74.1%, while at this time last year, 71.3% of the 840 auctions held returned a positive result.

Adelaide recorded its highest auction volumes since CoreLogic records began in 2008, at 82.2%, youp of 80.2% the previous week.

This week, Adelaide is expected to host 260 auctions.

Ray White auctioneer John Morris said he had planned a full week of auctions, with some sold out early due to aggressive pre-auction bids.

“There’s a lot of aggression out there in terms of missing buyers,” Mr Morris said.

“But, we find that when a property comes up for auction, the price we get is usually between 5-10% and above the highest bids made before the auction.”

While South Australia had been one of the states least affected by COVID-19, Mr Morris said there had been a lot of activity online and there was no reason to believe that would change.

“Almost 50% of my on-site auctions have an online component, and all of my on-site auctions,” Morris said.

“I don’t see him going anywhere. I had a fully online auction the other day for Ray White North Adelaide, and there were 48 registered bidders.

Mr Morris said online auctions allow people to attend multiple auctions simultaneously.

“If we didn’t offer it, we would run out of bidders,” he said.

This Saturday, 3 Brack Court, Trott Park is going under the hammer in a suburb not known for its auctions.

“Many agents, particularly within the Ray White network, have embraced the auction method so wholeheartedly that they have turned no-bid suburbs into auction suburbs,” Morris said.

Also up for grabs is a block of land at 112 South Terrace, Pooraka, and 2/94 Chief St, Brompton.

This week Melbourne is expected to host 1,651 auctions – its seventh consecutive week with volumes over 1,000. Last week Melbourne hosted 1,564 auctions, compared to just 646 last year.

Canberra is expected to host 180 auctions, topping the previous week as its busiest auction week on record. Volumes across Brisbane are down this week to 250, but the number is more than double the same time last year (119).

Perth is expected to host 29 auctions this week, while only one auction is currently scheduled in Tasmania.

Check out our auction roundup next week, when we delve into the Melbourne and Tasmanian auction markets.