With three of the biggest auction weekends of the year upon us, we have seen the first yield a healthy 61% clearance rate. Whilst nowhere near the lofty heights of 2009 (81%), this weekend’s result eclipsed the same weekend for both 2011(53%) and 2010 (59%). Both these past years had similar numbers of auctions. The pent up demand is obvious to anyone at the coalface of the market. With four auctions over the weekend and four negotiated properties throughout last week it was easily our busiest week for the year. But the next two weekends are shaping up for the same non-stop action.
There are a further 970 and 1010 auctions gazetted for the next two weekends respectively. It will run 2012 into a fairly healthy finish for what has been a mainly lacklustre year up to the Spring selling season beginning in October. It is quite obvious that the upsizers and downsizers that have been missing in action for the past two years are beginning to flex their buying power. This does two things to the market, firstly it adds to the competition and secondly, once successful, adds further top notch properties to the supply.
Downsizers have now begun selling their big properties in excellent locations, and those who have successfully sold, reaping the reward of extra competition are now bidding on smaller properties usually in similar locations to those they have sold. This is pushing the mid-range $700k – $1.2M properties to new price levels.
Even those upsizing who may have delayed their decisions to purchase a larger property over the last couple of years are now putting their properties on the market, or alternatively buying their dream home and selling later. Many of these upsizers have put together substantial equity in their properties over the last two years.
Whichever way prospective buyers decide to do things, either buy first or sell first and then buy, one thing is for certain those with large deposits or substantial equity in their homes are beginning to move again. 2013 will be a very interesting year.
There are still three weekends of auctions left. If you require any assistance with bidding or negotiation, please do not hesitate to contact the office.
Ian James
Director
JPP Buyer Advocates