When crashing auction clearances equals “panic buying”

For a crashing auction clearance rate to equal panic buying, just go to the AFR:

“Panic buying is happening. A bit like toilet paper it feels,” said Cate Bakos, buyer’s agent with Cate Bakos Property. “I had four auctions scheduled this Saturday and five next Saturday. Now I only have one on Saturday and one for next week.

“All have either been sold prior or have pending mid-week auctions. These pre-auction sales are being triggered by feisty buyers.”

All three properties she booked for next Saturday had received offers that were too good to refuse and were well above the pre-COVID-19 appraisals she had calculated, Ms Bakos said.

“So while I can see that some vendors are nervous or rattled, there appears to be enough aggressive and motivated buyers to patch the gap,” she said. “I think people who are particularly keen to buy a home are worried that if we have a social freeze, they will be chopped out of the market and then slammed when things improve.”

Obviously vendors are dumping stock prior to auctions top meet the market before it collapses. And why not given clearance rates are falling fast and about to go to zero for six months:

One the great upsides of the virus will the flushing of Domain into bankruptcy.

David Llewellyn-Smith
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