Below is an interesting research note from RP Data’s Cameron Kusher examining the state of the auction market over the first quarter of 2013.
According to RP Data, the national auction clearance rate has picked-up considerably to levels not seen since mid-2010:
There has also been a pick-up in the number of auctions, as well as the proportion of homes sold by auction:
On a week-to week basis, 1,445 auctions have taken place this year while for the same period back in 2012, there was an average of 1,334 auctions each week and in 2011 the average was 1,384 auctions. Based on these figures, Mr Kusher said that there are about 100 more capital city auctions each week and the likelihood of selling at auction has increased from around a 50:50 chance to a better than 60:40 chance.
“With a rising auction clearance rate it is interesting to look at the proportion of successful auction sales across the combined capital cities, compared to sales by private treaty. Over the first quarter of the year, 14.3 per cent of all sales across the combined capital cities were transacted by auction. The figure highlights that the vast majority of homes are sold by private treaty sales however, auction sales have risen from 10.5 per cent of all sales over the first quarter of 2012,” Mr Kusher said.
Across the individual capital cities there have of course been some variances in the proportion of sales. Melbourne and Sydney have the most substantial auction markets of all Australian capital cities. Over the first quarter of 2013, 25.2 per cent of all Melbourne sales were by auction, up from 15.8 per cent over the March quarter of 2012.
The proportion of successful sales by auction across Sydney has also risen over the past year. Over the first quarter of 2012, 13.4 per cent of all sales across the city were auctions. In comparison, 16.1% of all sales over the first quarter of this year were auction sales.
Full report below.
