Tight stock underpins strong clearance

In the midst of April’s many long weekends and school holidays across the country, auction performance is still sitting at a steady high, with hoards of bidders hungry to secure a home.

On the back of the central bank recently holding the official cash rate, Australasia’s largest real estate group today reported a preliminary clearance rate of 71 per cent nationally.

There were 199 auctions conducted around the country today, and there were an average of 4.2 registered bidders. Of those, three were actively bidding.

Both buyers and sellers were celebrating across the nation today, but results in Melbourne came out on top, taking out the highest clearance rate across the capital cities sitting at 82 per cent.

Resounding feedback from agents across the country is that the lack of stock is making it an ideal time for cautious sellers to take the plunge and list their homes.

The highest sale of the day came from Sydney’s eastern beaches at 105 Moverly Rd, South Coogee, which sold for $3.88 million under the hammer, representing a huge $388,000 premium on the reserve price. Jeremy Elmowy from Ray White Maroubra | South Coogee said that the main contributing factor to the success was a lack in similar stock in the region.

Ray White New South Wales chief auctioneer Alex Pattaro said sellers should feel encouraged to take the leap, as all signs suggest that this is a normal and balanced market.

“Property prices here in Sydney are continuing to move in the right direction,” he said.

“Those who are holding off coming to market need to be aware that should the property market start to rapidly increase, it will become more difficult for sellers to rebuy,” he said.

“Now is a fantastic time to be transacting. This is evidenced through our weekly clearance rates and increasing average number of registered bidders.”

105 Moverly Rd, South Coogee (pictured above)

• Sold under the hammer for $3.88 million (reserve was $3.5 million)

• Six registered bidders, three active

• Lead agent: Jeremy Elmowy - 0414 819 400

• Ray White Maroubra | South Coogee

• Auctioneer - Alex Pattaro, Ray White NSW chief auctioneer

Mr Elmowy said the huge brick family home was an investment tenanted by the Australian Navy, with the investor owners living in Cyprus, Greece.

“The winning bidder today is from Vaucluse; he will completely renovate the property and change the floorplan but not knock it down,” he said.

Mr Elmowy said buyer enquiry on this property was extremely strong due to tight stock levels in the area.

“Instead of having three or four comparable properties on the market at the same time, we are finding that our listings are the only one of their kind at the moment,” he said.

“There also seems to be a huge influx of people moving to this area from Vaucluse, Dover Heights and Bondi, due to getting bigger lots closer to the beach with their money.”

5 Lonard Ave, Wiley Park (buyers pictured above)

• Sold under the hammer for $957,000 (reserve was $825,000)

• 17 registered bidders, 6 active

• Lead agent: John Yatman - 0423 344 868

• Ray White Punchbowl

• Auctioneer: Alex Pattaro, Ray White

Mr Yatman said bidding for this home started at $700,000 and raised very quickly. It was a deceased estate sale with the nephew selling on behalf of the family.

“Three of the bidders today were actually neighbours in this street, and the winning bidder was the next door neighbour!” he said.

“She bid very well and hard, and she is planning to do a little bit of work to it before renting it out.”

Mr Yatman said there was simply not enough stock at the moment for the number of buyers, and that the good quality houses are getting huge interest.

“Six months ago everyone wanted move-in ready stock, but now people seem to be not too shy about a little bit of a renovation, which is interesting.”

Ray White Victoria and Tasmania chief auctioneer Jeremy Tyrrell said that auction numbers remained strong for their state network this week with 184 auctions scheduled on the final weekend of the school holidays.

“Buyers were out in force once again as there were close to three active bidders on average across all auctions, and the preliminary clearance rate showed healthy signs at 82 per cent today,” he said.

“The most exciting news from all of this activity is that it’s consistent with the previous week and provides added confidence that the real estate market is moving in a positive direction.”

1/78 Moonya Rd, Carnegie (pictured above)

• Sold under the hammer for $1,007,000 (on the market at $920,000)

• Six bidders

• Lead agent/auctioneer: Josh Hommelhoff - 0405 383 294

• Ray White Carnegie

Mr Hommelhoff said the major reason for such a great result was the total lack of similar stock in the market at the moment.

“We had 79 groups through this townhouse during the first open home, and north of 240 inspections in total throughout the campaign. That gives you an indication of how tight stock is and what a great time it is for sellers,” he said.

“It is really interesting how often I have been approached by clients in the last six months to help with finding relatives overseas who want to move to Melbourne,” he added.

The thrilled vendor is opting for a treechange and will now start shopping for a new home. The buyers, a young family, have been looking for a while and were underbidders on a Carnegie home last week.

37 Devon St, Cheltenham (buyers pictured above)

• Sold under the hammer for $1.140 million (reserve was $1 million)

• Seven bidders

• Lead agent/auctioneer: Trevor Bowen - 0417 501 327

• Ray White Cheltenham

This brick family home was a deceased estate sale, making it bittersweet for the executors.

“They would have taken $920,000 so they were really quite speechless with the result today,” Mr Bowen said.

The campaign saw 140 groups view the property and the first bid came in at $1,005,000, knocking out most other bidders and putting it straight on the market.

“That bidder was an agent acting on behalf of a downsizing couple who had just sold their home in Dingley,” he said.

“Well presented, well priced and well marketed homes are getting great interest. I actually live right in this neighbourhood so I love and appreciate this area as much as the buyers and sellers.”

2/54 Mt Dandenong Rd, Ringwood East (seller pictured above)

• Sold under the hammer for $477,000 (reserve was $390,000)

• Five bidders

• Lead agent: Harry Lai - 0402 638 076

• Ray White Manningham

All the bidders for this ground floor unit were first home buyers trying to get into the market and achieve the great Australian dream of owning a property.

“This two-bedroom unit is a perfect entry level starter home, and the winning bidder was a young first home buyer gentleman,” Mr Lai said.

The seller, who was thrilled with achieving such a great result over reserve, had been living there for some time and was moving back home to look after his Mum.

Ray White Queensland chief auctioneer Gavin Croft said it had been a stunning week in the auction space across the state.

“It is interesting to see some changes in behaviour from buyers, where they are becoming somewhat more aggressive in trying to secure a property prior to auction,” he said.

“The volume of auctions selling prior is high, and low stock volumes off the back of long weekends and Easter has pushed up bidder numbers.”

“It is more than likely that we will continue to see properties selling prior. Overall it is a great opportunity for home sellers to take advantage while stock levels remain low, and really maximise their opportunity now while the energy in the auction space is very strong,” he finished.

17 Quinton St, Kangaroo Point (pictured above)

• Sold under the hammer for $1.220 million

• Eight registered bidders, four active

• Lead agent: Karen Pierce - 0414 477 303

• Ray White Brisbane City

• Auctioneer: Dean Yesberg, Ray White

Ms Pearce said this great little cottage right in the heart of Kangaroo Point was two minutes walk from the iconic cliffs, and was move-in ready.

“This area is really the last residential pocket of houses in Kangaroo Point, so we had a huge crowd come along to watch the auction today. The winning bidder was a lovely young single first home buyer lady.”

The sellers, who are now wanting to retire, bought the home nine years ago for their daughter to live in and have since kept it as an investment property.

15/8 Deason St, Sunnybank Hills (sellers pictured above)

• Sold under the hammer for $580,000 (reserve was $570,000)

• Eight registered bidders, four active

• Lead agent: Anton Silaen - 0402 384 367

• Ray White Rochedale

Mr Silaen said the owners of this townhouse in Brisbane’s south were absolutely thrilled with the result.

“We are experiencing a real lack of stock; there are only two units for sale in Sunnybank right now. People really want to get into this area, and this unit is walking distance to Sunnybank Plaza.”

The lucky winning bidder was a father buying for his son, who will be living there with his wife.

“The market is really quite outstanding everywhere for apartments at the moment; we are seeing 8-10 registered bidders per auction. The proof is right here today; it is a great time to sell,” he finished.

Ray White South Australia chief auctioneer John Morris said auction volume across the state had decreased significantly this weekend, with the lowest count this year (with the exception of the Easter long weekend).

“Ray White’s numbers remain very strong with 43 per cent of auctions across the state being sold by one of our agents,” he said.

“Is an auction sale harder work for an agent? I would say yes. However it provides an iron clad contract for the seller, and this is the reason why our agents tend to run toward the method rather than shying away from it when it looks like the market is changing.”

“Last week we had six registered bidders on average with 50 per cent of these raising their paddle. This resulted in 88 per cent of properties selling under the hammer on the day.

“With this week’s positive news around interest rates, it would appear that we are moving back into a very favourable position for sellers, and the auction method is the best option in these conditions.”

13 Sierra Nevada Boulevard, Pasadena

• Sold under the hammer for $1,062,000

• 10 registered bidders, six active

• Lead agent: Jason Mills - 0431 809 306

• Ray White Unley

• Auctioneer: Robbie Smith, Ray White

Mr Mills said the sellers (pictured above) were a couple with three kids and had recently bought a block of land to build their dream home. The sale of this determined what they could build; they can now tick every single box for their dream home.

“The lucky winning bidder was a family from Singapore who recently immigrated here with three kids. I could tell they absolutely fell in love with this property, so I am so glad that they secured it today,” Mr Mills said.

“In general, Adelaide is still in a brilliant bubble for property; properties are all getting multiple offers even small units on main roads. My advice as an agent is that good quality staging and simple cosmetic fixes like a good paint job, can go a long way.”

19 Branksome Tce, Dover Gardens (pictured above)

• Sold under the hammer for $700,000

• Seven registered bidders, six active

• Lead agent: Nick Borrelli - 0432 270 893

• Ray White Paradise

Mr Borelli said that the sellers had been there 61 years; it was their first ever home. They will now be moving onto their next phase of life at a retirement village.

“They raised their three children there, and now have plenty of grandchildren and great grandchildren. There were a few tears today, as you can imagine it is emotional to say goodbye to a place you have called home for so long.”

The home went to a young couple who will rent it out and eventually build on the land, passing this home over to the next generation.

CLICK HERE FOR IMAGES AND AUDIO

Media Contact:
Nina Clarke
Ray White media team
0448 841 606
nclarke@raywhite.com