Shorter auction campaigns are tempting buyers seeking a pre-Christmas property purchase

Shorter auction campaigns are tempting buyers seeking a pre-Christmas property purchase
Shorter auction campaigns are tempting buyers seeking a pre-Christmas property purchase

GUEST OBSERVER

With Christmas fast approaching, more property sellers are opting for three-week auction campaigns.

This weekend’s Super Saturday auction extravaganza features a large number of properties, which are using three-week marketing campaigns, rather than the traditional four-week approach.

This is a sensible strategy given Sydney’s high clearance rates and stock levels that are lower than in previous years. These factors are encouraging more owners to act quickly before buyers lose interest, or more stock comes onto the market.

The hottest auction clearance rates were achieved in Sydney’s Inner West last weekend, with 91 percent of properties selling under the hammer.

The next best was the Northern Beaches with a clearance rate of 90.5 percent, followed by the city and the Eastern Suburbs with 90.2 percent, and the Lower North Shore with 84.4 percent.

A clearance rate above 90 percent means vendors have very a solid chance of selling in this market, and it’s this realisation, and the proximity to Christmas, which is encouraging more owners to choose a shorter, marketing campaign.

Savvy sellers also realise that some committed buyers may be willing to accept a three-week settlement, as they wish to move into their next property before the end of the year. However, once we reach the second week of December this possibility fizzles out.

Also by the middle of next month, the mindset of many buyers will start to drift away from real estate, to preparing for a Christmas visit from the in-laws, buying presents for the children and planning for the holiday season.

The higher than usual number of three week auction campaigns indicated more real estate agents are adapting to prevailing market conditions.

James Pratt is director of auctions, Raine & Horne, and can be contacted here.

Tags: 
Residential Sales Time On Market

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