Look beyond the auction gavel
With the Australian Dollar losing ground to other major currencies, many families are opting to ...
With the Australian Dollar losing ground to other major currencies, many families are opting to spend these school holidays on our own shores.
Auctions are a very effective way of generating interest in a property; it typically engages potential buyers over a concentrated marketing campaign of three to four weeks, establishing a deadline for bidders.
An auction gives you three chances to sell - prior to the auction, at auction or post auction. This means that looking purely at clearance rates can be a bit misleading. Although clearance rates are good at capturing demand at a ‘point in time’, they do not capture properties that sell prior, or those that get sold in the hours or days following the auction.
Even though reports suggest auction clearance rates going down,
LJ Hooker’s national network is reporting an increase in those that are selling either before, on the day, or after auction.
Nationally, the proportion of properties that LJ Hooker has sold at auction, compared to private treaty, continues to rise steadily, making up 26% of sales in October 2015, as seen in Table 1.
Proportion of sales by LJ Hooker
The steady rise in auction sales proves there is yet to be a flood of vendors switching to favour private treaty as a sales technique.
Overall within LJ Hooker, the number of sales settled in October was six percent higher than the same month in 2014. This rise in sales took the total value of settled sales to 15% higher than the same time last year. Even in NSW, where many say the market is easing, sales volumes continue to remain strong; up 9% compared to last year.