Australia’s auction market looks set to finish the current financial year on a positive note, with excess of 2,000 auctions again scheduled this week.
Figures from CoreLogic show 2,110 auctions are scheduled for Australia’s capital cities this week, relatively stable on last week’s 2,183.
Last week’s national clearance rate finished at 67.4%, up from 65.7% over the previous week.
In Melbourne, 982 homes are set to go under hammer this week as the city sets a record mark for auction activity in this time of the year. Melbourne finished last week with a clearance rate of 68.3%.
While it has consistently been the busiest market in 2016, volumes are down on what has been seen in Melbourne in recent years and Melbourne based buyer’s agent Cate Bakos said that has resulted in strong buyer competition, even with an election looming.
“We’ve got increased number of buyers per property and you’re seeing people that have missed out consistently and are stretching beyond what even agents would assume an energetic be prepared to stretch,” Bakos told Your Investment Property.
“I anticipated some election jitter and for it to sway buyer numbers, but it certainly doesn’t look like that, especially in the inner and middle rings,” she said.
For buyers, Bakos believes spring may bring some relief as she predicts an increase in volumes.
“I hope we do see increased numbers and that give buyers an easier chance to buy within the realms of what we think is fair market buying,” she told Your Investment Property.
“I really do hope that we get a bit of a reprieve through September and October and I anticipate that we probably will.”
After being the nation’s busiest auction market for a solid stretch of 2015, Sydney has fallen behind Melbourne in terms of volumes recently and will this week hold 778 auctions.
Rich Harvey, chief executive officer of propertybuyer.com.au, said the lower volumes had helped Sydney’s clearance rate retain some strength and he also believes volumes will increase later in the year. READ MORE