More Australians feel confident with auctions
Auctions are proving to be a popular method of sale for both sellers and buyers in the current market.
According to a recent survey of LJ Hooker agents, every second auction they conduct are attracting three to five bidders. Low interest rates are playing a prominent role in the competition amongst buyers.
Additionally, the poll found nine per cent of auctions were attracting as many as six or more active bidders competing for properties.
LJ Hooker Head of Real Estate, Christopher Mourd, said the survey results confirmed auctions were being embraced by the broader market, even outside the traditional auction heartlands of inner Sydney and Melbourne.
“The number of auction listings has increased in other capital cities and regional areas, as both sellers and buyers understand it’s the most effective method of sale in the current environment,’’ said Mr Mourd.
“Last year, the number of properties taken to auction eclipsed the 100,000 mark for the first time on record.
“Even in Western Australia, where auctions have traditionally represented a small percentage of sales transactions, sellers are finding auctions are effective in capturing a cohort of buyers in a market where there is a large amount of properties on offer. The no-price strategy and deadline of auctions are appealing in an environment where days on market have increased,’’ concluded Mr Mourd.