For the first time in nearly two months, onsite-auctions returned after the Government finally lifted some of its social distancing measures.
The first week back saw a combination of both online and on-site and across the small number of properties for auction with 60.2% selling according to preliminary data from CoreLogic.
CoreLogic data showed that in Melbourne, 118 homes were scheduled to go under the hammer last week, which was down from the same time last year as we might expect. CoreLogic believe that the return to on-site auctions has had an “immediate and positive impact”.
Taking a look at how the various city regions performed, again it was the inner regions that showed some of the strongest results, with a very strong 72.2% clearance rate from 18 auctions.
Traditionally, the inner areas are highly sought after with the majority being sold via public auction. The inner areas had previously seen some weakness in the levels of vendor discounting, thanks to the ban on onsite auctions, but it appears that area will be one to rebound the fastest.
The Inner South also showed a strong preliminary clearance rate coming in at 69.2%. Interestingly, Geelong also recorded a solid preliminary result, with a clearance rate of 71.4%, making it one of the strongest regional areas in the country.
With auctions returning, there is some chance many of the vendors who had previously withdrawn the properties for sale amidst the COVID crisis, will list their properties.
Currently, Melbourne has 21,478 properties listed for sale with 3,845 of those considered to be ‘new listings’. That suggests that there is confidence returning.
At the same time, vendor discounting for houses in Melbourne remains steady at -3.4%, with the average time to sell a house being 39 days.
REIV President Leah Calnan commented that the return to on-site auctions will really lift sentiment.
“Online auctions have worked well over the last few weeks and we encourage members to use this as an additional channel for wider engagement.”
“Having public auctions will inspire increased confidence in our economy, auctioneers across the state are looking forward to getting back to what they do best”.
“We are very excited about auctions coming back, the real estate sector is prepared to do the right thing to ensure auctions and open for inspections are run safely.”