Auctions on the rise as sellers seek premium results
The popularity of auctions has risen among sellers with major real estate network LJ Hooker recording a 28% increase in auction listings over the last three years.
LJ Hooker Head of Real Estate Christopher Mourd said the increase proved sellers were more confident that the auction process was a great way to secure a premium result in the marketplace.
“We’ve seen auction clearance rates rise to exceptional levels, especially in the eastern capitals,’’ said Mr Mourd.
“But the clearance rates also prove that buyers are more comfortable with the auction process. There was a segment of buyers in the marketplace that used to shy away from buying at auction, but they now understand it’s a very transparent way to purchase.’’
States and territories where LJ Hooker recorded the highest growth in auctions were the ACT (82.3% growth since 2012) South Australia (47% increase) and New South Wales (41.4%).
“There have historically been some pockets where the overwhelming majority of properties on the market have been taken to auction. But over the last three years, sellers are thinking a little less about the geography of a property, instead wanting to engage an agent that knows how to properly market a property for auction,’’ said Mr Mourd.
“Irrespective of where a property is positioned in the property cycle, LJ Hooker believes auctions are a very effective method of sale for sellers.