Good news on weekend volumes for McGrath but still no meaningful uptick in volumes: Bell Potter
Bell Potter has advised McGrath shareholders with an updated chart on auction volumes and clearance rates in Sydney which includes the results for last weekend.
"The key take-out is volumes dipped slightly last weekend relative to the weekend before and the clearance rate remained above 80%," broking analyst Chris Savage said.
"There has still yet to be, however, a meaningful uptick in volumes and we are now approaching the end of October (i.e one month of spring to go).
"The good news, however, is that this coming weekend is looking good for Sydney with CoreLogic RP Data saying there are currently 968 auctions scheduled.
"If this is correct, it will be the highest level for the half and easily surpass the previous highs of 863 (24th September), 835 (15th October) and 820 (22nd October).
"Still, it is below the levels achieved last spring when auctions regularly exceeded 1,000 on a weekend.
"We wait and see if the scheduled uptick in volumes this weekend continues into November and if there is is a late uptick in volumes for the spring selling period," he said.
Expansionary McGrath's volumes are up slightly year on year, against the overall market trend of less auction stock.
Property Observer is aware there were 111 auctions between 10 October 2015 and 12 October 2015. There were 95 McGrath auctions between 17 October 2015 and 19 October 2015. There were 111 auctions between 23 October 2015 and 26 October 2015.
Last weekend McGrath had around 127 weekend auction offerings, up on the prior weekend's 115 listings and around 108 on the October 8 weekend.
Property Observer suggests Saturday November 26 will be a bonanza, with many fresh vendors seeking to get a sale on the last Saturday of November. There is quite likely a busy December ahead too.