Incredible lockdown statistics!
- belindacassano
- May 29, 2024
- 3 min read
Does lockdown mean close down?
Not when it comes to the Sydney property market.
The following report has been compiled by our chief auctioneer, Clarence White. Amazingly, the stats are not what you would expect.
Certainly, if you are thinking of selling in the near future, it appears the time is now!
CLARENCE’S REPORT
Core Logic reported 661 auctions across Sydney for the week, which is down 104 on the week prior, with a clearance rate of 77%, which is up 5 points on the week prior. Menck White handled 24 auction bookings for the week with a clearance rate as at midnight on auctions days of 92% and average of 14.4 registrations per auction that ran.
The average number of registrations per auction stat is the headline this week. That is an extremely big number and it has more than doubled on last week, which had nearly doubled on the week prior. So since on-site auctions have been shut down and pushed online, the average number of registrations has roughly doubled week-on-week for two consecutive weeks. And it is important to note that the trend prior to the lockdown was that those numbers were actually going down and have been gradually declining since March. So this lockdown has reversed the trend and there is now a significant uptick in average registrations per auction currently running.
“Why?” I hear you ask. Well, we are seeing a lot of auctions being postponed by nervous vendors who are worried about taking properties to auction in the current situation. We know from our own forward booking levels and from our conversations with agents that a lot of stock is being held back from coming on right now for the same reason. Those two factors are creating a pinch in the number of properties that are available to be purchased right now. And that in turn is translating into a larger number of registrations per auction that runs. It’s simple supply and demand dynamics.
What this means is that there is a unique window of opportunity for vendors who are willing to stay the course and run their auctions online currently to maximise the number of competing parties on their home. There’s no doubt that buyers are slightly more tentative initially in engaging in the online environment, which is new to many of them, but once the auctions get going we are seeing good bidding and some strong results. Interestingly, what we are not seeing is much hesitation on price. Situational uncertainty often breeds price hesitancy, but we are not necessarily seeing that so far. As in the extended lockdown last year, instead of displaying caution, buyers are seeing the opportunity to pounce while others pause.
It’s a fascinating time in real estate. And the numbers don’t lie.
Our online auction platform via Zoom looks very schmick and as we do more and more online auctions we are gradually refining what we do to have them run increasingly smoothly too. Two-way interactive video and the ability of buyers to see and hear each other and for the auctioneer to be able to see and hear the bidders, replicates the key elements of an on-site auction that create competitive bidding and auction success.
I think you will agree that it IS a fascinating time in real estate!
Published August 24, 2021
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