Vendors who are putting off taking their homes to auction could miss a golden opportunity, property experts say.
Property experts say it’s a good time to take properties to auction.
Fierce competition for property is bolstering Adelaide’s auction market despite fewer homes going under the hammer in the past three months because of COVID-19.
Latest CoreLogic figures show the number of properties that went to auction plummeted from 1082 in the June 2019 quarter to 450 in the same period this year.
However, the clearance rate has remained fairly steady, dipping from 47 per cent last year to 44.7 per cent this year.
Real Estate Institute of South Australia president Brett Roenfeldt said fierce competition was responsible for the success at auctions.
“Basically because there’s an acute shortage of stock, buyers are competing strongly for the good quality stock that’s available,” he said.
“The competition is very strong … so the prices are holding up.
“Last Saturday I had six auctions booked and two sold before, under auction conditions, and we sold four out of four (at auction).”
Mr Roenfeldt said the combination of strong demand and limited properties on the market made it a good time to sell.
“If any vendor was thinking about selling, I’d be doing it sooner rather than later,” he said.
Ray White SA chief auctioneer John Morris said vendors holding off on selling could be missing a golden opportunity.
“If you’re not taking a property to auction at the moment, you’re potentially leaving tens of thousands of dollars on the table,” he said.
Mr Morris said the shortage of stock meant some househunters were turning up to auctions until they left with a property in their names.
“I’m often seeing the same bidders at different auctions,” he said.
“If I’m selling something in the same area, they’re rocking up at each auction.”
Adelaide’s clearance rate has dropped slightly despite the number of auctions plummeting.Source:News Regional Media
Adelaide’s clearance rate was higher in the March quarter when it reached 52.3 per cent on 827 auctions – up on the 48.8 per cent on 933 auctions during the same period in 2019.
Australia’s capital cities recorded a combined clearance rate of 47.9 per cent in the June 2020 quarter compared to 55.5 per cent in the same period the previous year, which was based on 13,783 and 18,104 auctions respectively.
CoreLogic research head Eliza Owen said the coronavirus pandemic had made a big impact on the market over the past few months.
“The initial market response to COVID-19 was a severe drop in sales and listings across both auction and private treaty sales methods,” she said.
“Many vendors who did not have to sell were initially unwilling to take their property to market in a time of high uncertainty.
“This contributed to a fall in sales volumes of -32.4 per cent over April.
“However, following this initial shock, transaction activity has steadily recovered as social distancing measures eased, and consumer confidence levels experienced a strong recovery in May and June.”