Auction volumes slump under COVID-19 pressure

by Madison Utley20 Apr 2020

The impact of the increase in scheduled auction volumes following the Easter weekend slump was minimised by nearly 50% of the results coming back as having been withdrawn, according to CoreLogic data. 

While 1,848 capital city homes were scheduled for auction this weekend as compared to the Easter period when just 634 homes were taken to auction, 50% of all results from this weekend were recorded as being withdrawn in the initial results collected. 

Further, the new policies banning onsite auctions and inspections will continue to impede activity across the auction market, with low confidence and uncertain circumstances likely to see fewer vendors opting for auctions as their preferred method of sale with each subsequent week. 

CoreLogic noted the number of auction results collected at a preliminary stage have been lower than usual as the status of scheduled auctions needs to be confirmed.

At this stage, the data shows that of the 356 properties that reported a sold result of the 1,848 scheduled for auction this weekend, 64% sold prior to the auction date.

In Melbourne, 73.2% of the successful auctions were sold prior to the scheduled auction date. Overall, 53% of auctions were withdrawn from the market. 

The clearance rate was also skewed lower by a large proportion of withdrawn auctions in Sydney, with half of the results collected this week reported as being withdrawn.

Of the auctions that were successful, 60.2% were sold prior to the scheduled auction event.

Across the other cities, Canberra performed best with a 66.7% preliminary success rate and the lowest rate of withdrawn auctions at 25%.