Uncertain vendors in Melbourne and Sydney are taking the opportunity to sell before auction at an increasing rate.
The auction clearance rate rose slightly on the weekend but is well behind where it was at the same time last year.
CoreLogic’s Kevin Brogan said the increase in cleared sales this weekend were all transacted before auction.
“What we understand is that, if there are more sales before auction, then the vendors are nervous about the outcome at auction,” he told Australian Financial Review.
“So they are more likely to sell beforehand.”
The weekend saw a surge in sales of cheaper apartments in the main capital cities, and Ray White auctioneer Mitch Peereboom told AFR it was due to unit buyers, and especially first-home buyers, bidding with more confidence.
“They are more confident than they were a year ago and they are now getting very involved in auctions,” he said.
“On average we had three registered bidders at each of our auctions this week.”
Melbourne was the busiest city in the country for auctions this week, with 612 homes going under the hammer and recorded a clearance rate of 62.3 per cent.
Real Estate Institute of Victoria CEO Gil King told YourMortgage.com that this winter East St Kilda had been one of the city’s best performers.
“St Kilda East has been a star performer in the winter market and this trend continued over the weekend with all three listings cleared,” he said.
“So far this winter, St Kilda East has maintained a strong clearance rate of 96 per cent from 25 auctions.”