Days are warming, flowers are blossoming and if you’re looking to buy a home, figures show you’re more likely to bid at auctions than ever before.
Spring 2014 has shown signs it will beat out last spring as the strongest season for auction activity since the GFC.
Aussies attended home auctions in growing numbers last week as high auction clearance rates continued across capital cities. RP Data preliminary figures showed an average clearance rate of 70.8 per cent across the nation’s six biggest capitals, marginally down on the 74.1 per cent recorded the previous week.
RP Data’s Robert Larocca said last week’s activity added to already substantial growth in capital city auction volumes. “Prior to this week there had been 61,056 auctions in capital cities, 33.6 per cent more than the 45,696 held over the same time last year,” Mr Larocca said.
A significant part of that growth came from Melbourne. The Victorian capital recorded 1005 auctions across the city, the first 1000-plus auction weekend this spring. More auctions are expected next weekend as vendors move to get in before the AFL Grand Final the weekend after. Melbourne’s preliminary clearance rate was 70.9 per cent, compared to 76.6 per cent the previous week.
Sydney’s run as the strongest market for auctions continued, with 78.3 per cent of auctioned homes attracting a sale. The week prior the clearance rate had been 80.1 per cent, one of only five times Sydney weekly clearance rates had been above 80 per cent in the last five years.
Brisbane, where auction sales are much less popular than in Sydney and Melbourne, recorded a clearance rate of 49.4 per cent, up almost 5 per cent on the 44.7 per cent rate seen the previous week.
The clearance rate was 62.7 per cent in Adelaide, 52 per cent in Canberra and 43.8 per cent in Perth.
If you are considering buying at Auction please make sure you have your finance fully approved prior to auction, as when you buy at auction it is an unconditional purchase with no subject to finance clauses.
A pre-approval is just not good enough as most pre-approvals are subject to valuation and the security being acceptable to the bank, so you need to get the valuation complete prior to auction – not all lenders will do this.