Nathan Hauritz caught as auction success rate deteriorates into the 30s

Nathan Hauritz caught as auction success rate deteriorates into the 30s
Nathan Hauritz caught as auction success rate deteriorates into the 30s

The number of auction vendors hoping to find a buyer has continued to rise, but traditionally as December arrives, clearance rates wane.

This year more so than ever.

It's not just the the seasonal distractions of Christmas, the cricket and heading off to the coast.

Many buyers have taken a look at the 2018 stock that's on market and instead decided to postpone purchasing until next year when the likelihood is that prices will be cheaper. 

The weekend sale turnover in Sydney totalled just $129 million in sales, well down on the $600 million this time last year, Domain calculated.

Melbourne had $258 million in recorded weekend sales compared to $826 million the same weekend last year.

There are definitely far fewer buyers around, with many no bid auctions, agents says.

The top result was in coastal Sydney, just above the beach at Newport.

The 15 Karloo Parade offering sold pre-auction for $5.5 million through LJ Hooker agents Lachlan Elder and Josephine Cowling.

It sold for less than its price guidance.

There had been $5.8 million hopes for the Timothy Moon-designed house at Bungan Beach on the northern beaches.

Sydney's weekend clearance rate sat at 41.4 percent, Domain reported, with unreported results likely to see it fall into the 30s.

Melbourne did fall into the 30s in spring's last weekend, and was at 45 percent based on the preliminary results on the first weekend of summer.

SQM's Louis Christopher recently noted the data showed there had been three prior times when Sydney auction clearance rates had sunk into the 30s.

"That was in October/November 2008 during the GFC, May 2004 after the NSW vendor stamp duty was introduced and July 1989 when the cash rate hit 17 percent," Property Observer reported.

As clearance rates have fallen, selling prices have also dropped back.

Melbourne's cheapest sale was $305,000 for a one bedroom apartment in Box Hill.

The sale of 406/1 Watts Street, Box Hill was well below the $320,000 to $352,000 price guidance.

The recent $370 a week rental also sold well below its 2011 $390,000 sale price, CoreLogic advised.

Melbourne's top sale was 11 Wheatland Road, Malvern (pictured below) at $4.01 million. 

Nathan Hauritz caught as auction success rate deteriorates into the 30s

The four bedroom newly renovated Federation home had $3.8 million to $4.1 million price guidance through Iain Carmichael at Jellis Craig.

The busiest suburbs for weekend auctions were in Victoria, with Glen Waverley topping the list with 25 offerings, according to CoreLogic data.

Of the 17 advised auction results the priciest offering failed to sell, with 697 High Street Road passed in on a $1.5 million vendor bid.

CoreLogic recently calculated the national clearance rate dipping to 41.9 per cent, the lowest result for six years.

Nathan Hauritz caught as auction success rate deteriorates into the 30s

Some 2,742 homes were taken to auction across the combined capital cities over the past week, slightly higher than the 2,701 auctions held in the prior week.  

Current volumes remain lower than over the same period last year when the final national clearance rate was recorded at 60.3 per cent across 3,291 auctions.

Brisbane was the weakest east coast capital with a 40 percent clearance rate, according to CoreLogic.

The former Test spinner turned stock market trader Nathan Hauritz and wife Dianne had hoped to secure a weekend auction buyer of their Brisbane home (pictured top).

But now it is listed with $925,000 plus hopes.

They paid $680,000 for the Bulimba home in 2013.

The 1950s three bedroom, one bathroom home featuring traditional period features including polished timber floors and high ceilings, had been scheduled for auction through Ray White Bulimba agent Alex Donnan.

Another postwar Brisbane home fared better.

In Wooloowin53 View Street (pictured below) attracted 11 registered bidders, four of whom were active during the auction, Domain reported.

Nathan Hauritz caught as auction success rate deteriorates into the 30s

The house, which sold for $875,000 to a developer, had been owned by one family since 1949.

The ANZ-backed REALas price tipping website struggled to anticipate the buyer demand with their forecast $742,000 advisory.

 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Clearance Rate Weekend Auctions

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