Doom and gloom time! - latest auction figures

[Aceyducey]

Australian Property Monitors, publishers of the Home Price Guide™, today released the national residential auction results for the month of April 2004.

The results reveal that once again overall property conditions continue to weaken, particularly in the Sydney market where clearance rates recently touched 32.8% last weekend, a level not seen since 1989.

For the month, Sydney clearance rates fell to 43.2% based on 1,095 properties auctioned, 179 properties withdrawn and 551 selling under the hammer or prior to auction. Auction volumes were 23.9% down on levels recorded in April 2003. Volumes may have been impacted however by the close proximity of the Anzac Day and Easter holidays.

Louis Christopher, Home Price Guide™’s Research Director said “We have not seen clearance rates like these in the Sydney market since the last recession of 1990 – 1992. In some regions such as The Hills District, Upper North Shore, and Inner Southern City areas, clearance rates are struggling to hold 30%.”

In Melbourne, auction clearance rates fell from March to 50% during the month. Last year in March, Melbourne recorded an auction clearance rate of 69%. That said, over the past week, Melbourne clearance rates recovered to over 54%, possibly on the news of the new first homebuyers’ relief from stamp duty.

In South East Queensland, auction clearance rates continued their steady decline. In Brisbane, clearance rates fell to 44.9% - indicating that the market is in an orderly slowdown phase. While on the Gold Coast, the market continues to struggle with clearance rates falling to 27%, the lowest clearance rate recorded anywhere for the nation during April.

After a solid March, Adelaide clearance rates fell back to 52%. Volumes have dramatically slid away. 179 properties went to auction during April, a fall of 52% from volume levels recorded in 2003. Still, Adelaide was once again the city with the highest clearance rate for the nation. Elsewhere, Canberra recorded a clearance rate of 33%. Newcastle also recorded the same weak level at 33%, while Perth recorded 30%.

Home Price Guide™
House & Unit Auction Results by City (April 2004)

City.......Number....Number...Clearance....Value.......Auction
..........Auctioned...Sold.......Rate.......Sold.....Median Price
.......................................($ Millions)
Melbourne...1,535......760........50%....$304.5m.......$385,000
Sydney......1,274......551........43%....$435.3m.......$720,000
Newcastle......43.......14........33%......$8.6m.......$618,000
Brisbane......287......129........45%.....$59.1m.......$416,000
Gold Coast....206.......55........27%.....$31.0m.......$515,000
Canberra.......48.......16........33%......$8.2m.......$449,000
Adelaide......186.......97........52%.....$29.8m.......$360,750
Perth..........37.......11........30%......$8.1m.......$660,000

Source: www.homepriceguide.com.au (02) 9339 8200.

Copyright Australian Property Monitors 2004. Based on provisional auction results reported to APM as at 13 May 2004.

 

[Garry K]

Thanks Acey

Even to compare a decline compared to last year is not a good comparison. I can remember auctions in melbourne then, and it was amazing to see the crowds gather. So the market was running hot, it had to slow down.

Intersting that the Melbourne median is below brisbane Goldcoast, by quite a bit.
Is it just a quirk of some high price sales up north and not in melb.?

Seems odd to me, melbourne being the auction capital of australia.

What do you put that down to?

GarryK

 

[Peter Parker]

Intersting that the Melbourne median is below brisbane Goldcoast, by quite a bit.
Is it just a quirk of some high price sales up north and not in melb.?

Seems odd to me, melbourne being the auction capital of australia.

What do you put that down to?

GarryK

Melbourne being the auction capital is precisely the reason!

Look at Perth, where house auctions are rare. Average house prices are near $250k, but auctioned houses are much dearer. In Perth almost no 'average' houses are auctioned, so auctions are confined to premium properties, pushing the average up.

In Melbourne (at least around here) it is very common for average houses (or even units) to be auctioned. Thus the average auction sale price would be close to the average for all property sales.

Last weekend 2 out of 3 auctions were passed in. The crowds continue to watch if it's a quality property, but the days when you'd see big crowds seeing a 1br unit or villa being auctioned have gone.

Regards, Peter

 

[Jacque]

Don't forget that auction results are not always what they seem. They can end on a Vendor Bid or can be withdrawn just prior, to make the clearance rates look better.
I've been watching the Brisbane auctions lately, and have noticed a lot that are advertised then have no published result. Wonder what happens to them?.......

 

[crest133]

Don't forget that auction results are not always what they seem. They can end on a Vendor Bid or can be withdrawn just prior, to make the clearance rates look better.
I've been watching the Brisbane auctions lately, and have noticed a lot that are advertised then have no published result. Wonder what happens to them?.......

Funny how agents don't advertise their failures

 

[paul_s]

went to one today in South Yarra Vic where there was no bidders at all, the agent put in 4 vendor bids, 250k, 260k, 270k, 280k which would seem to have just been so the result in the paper looked better.

 

[Jase]

Some informed comment on the relative impact on the recent auction regulations on sales would be interesting to see at this point. It's a shame they weren't introduced a little earlier!

Jase

 

[Aceyducey]

went to one today in South Yarra Vic where there was no bidders at all, the agent put in 4 vendor bids, 250k, 260k, 270k, 280k which would seem to have just been so the result in the paper looked better.

Isn't that now illegal?

Paul - maybe you should report the agent so that the appropriate authorities can have a few spies in their future auctions....

Cheers,

Aceyducey

 

[MJK]

No they are not illegal if they are done by the auctioneer only, and he/she discloses to the crowd that it is a vendors bid/on behalf of the vendor.

I know... a bit of nonsense

MJK

 

[Peter 14.7]

Unbelievable

went to one today in South Yarra Vic where there was no bidders at all, the agent put in 4 vendor bids, 250k, 260k, 270k, 280k which would seem to have just been so the result in the paper looked better.

If ever there was an example of the state of the market that Auction was it!

How stupid must the agent felt bidding against himself?

After Passing it in I wonder if he advsied the crowd he was going to enter into negotiations with himself to try to reach agreement! LOL

Whilst not illegal it does raise the question that when the only and last bids is the agents it should be noted somehow.

If I gave him call now his response would be "it got passed in at $280k" implying that was what the market felt it was worth. Very dishonest.

Time to add to you list of questions:

How many bids were by the agent and what were they?

Regards Peter 147

 

[Aceyducey]

No they are not illegal if they are done by the auctioneer only, and he/she discloses to the crowd that it is a vendors bid/on behalf of the vendor.

I know... a bit of nonsense

MJK

MJK,

I thought that only ONE vendor bid was allowed.....

Cheers,

Aceyducey

 

[MJK]

Peter,

You hit the nail on the head. Passed in at 280k sounds better than no bids. Don't believe what you read in the news papers.
We've attended a few auctions where there are no bids at all, but they do end up selling the house that afternoon. I cant see why the buyers just dont put in a low ball rather than not bidding at all. Recently we went to an auction that had no bids and 2 hrs later people were still milling around in front of the house....it sold.... the auction after the auction?....I'd hate to be the agent that needs to get to the next action straight away!

MJK

 

[XBenX]

Isn't that now illegal?

Paul - maybe you should report the agent so that the appropriate authorities can have a few spies in their future auctions....

Cheers,

Aceyducey

Not that its an area Im really interested in but Im sure they can only have one vendor bid now?

Kevin, Asy ?

 

[XBenX]

MJK,

I thought that only ONE vendor bid was allowed.....

Cheers,

Aceyducey

Next time Ill read the whole thread before replying

 

[paul_s]

yes at the time it very felt like the whole auction was a bit of a farce, the place was a very new mirvac apartment, I think the kind of property that would not be easy to sell in the current market.

I'm been to a maybe 10-15 apartment auctions in inner areas over the last two months, it is actually pretty normal for there to be no genuine bids, or at best one low ball bid. Of all those auctions I have only seen one sold at auction, that was the mortgagee sale I mentioned in another thread.

 

[MJK]

I'm not sure about the one bid only.
In Vic the auctioneer goes into this legalistic speel before the auction disclosing that he can make bids on behalf of the vendor as long as its out in the open.
I don't think they mention only one bid. I'm pretty sure they have been making multiple bids in an attempt to start things off. Its like "OK no one wants to bid so I will" and then "still no bids so I'll put in another". Everyone is clear that it is a vendor bid.

MJK

 

[Peter 14.7]

Supply & Demand

Hi Acey & all

Re Doom and Gloom

In my neck of the woods, Surry Hills NSW you may be interested to know supply is huge at the moment!

For example in July 2003 there were only 3 terrace houses for sale in the entire suburb (tight but not usually).

As of tonight I counted 38 in Domain excluding the one I was looking for!

The laws of supply and demand at work. Maybee L.B, ain't so wrong?

Peter 147

 

[Aceyducey]

The laws of supply and demand at work. Maybee L.B, ain't so wrong?

Have property prices fallen 35% in Surrey Hills yet Peter?

Actually as L Bernham predicts a countrywide fall of 35% and other areas are still rising, the decline in prices would probably have to be at least 80% to balance out....seen that level of price falls?

If you have tell me privately & I'll buy a few myself!

Cheers,

Aceyducey

 

[Peter 14.7]

Have property prices fallen 35% in Surrey Hills yet Peter?

Actually as L Bernham predicts a countrywide fall of 35% and other areas are still rising, the decline in prices would probably have to be at least 80% to balance out....seen that level of price falls?

If you have tell me privately & I'll buy a few myself!

Cheers,

Aceyducey

Hi Aceyduecy

Not 35% but i say 10% so far and another 10% to come.

AND ...I may have the perfect test coming up.

Remember I sold an IP (2 Story Terrace at 5 Clisdell St in Surry Hills Inner CBD Sydney) on 5th July 2003.

Imagine my surprise when a flyer was popped through the door of my PPOR around the corner advising it was going to Auction again by the new owner.

So here is a unique opportunity for us to really see what has happened is this area since July 2003.

Can you put a poll so all can have a Vote? Say - No Change 2 % either way, 5% slight drop/rise, 5 to 10% big drop/rise, 10 to 15% huge rise/drop, 20% and more massive rise/drop.

Details are:

Two storey Terrace built 1895
Front and Rear Garden
2 Bedrooms no robes with study in middle
Combined laundry/bathroom with bath.r
Open plan living and dining are with polished floors.
Walk through kitchen laminate with terracotta tiles floor. Std stove white.
3.2M wide
Rental $380 week
Minimal Depreciation being 1895 vintage

Renovated in 2002 with new carpet, polished floors paint inside and out, door handles, lightfittings, garden paved and landscaped, new metal fence to rear.

Sold in July 2003 for $570k at street auction. Agent tells me going to market late June early July but open to offers prior! Promised web site today but still looking.

Can you list a poll on this property?

regards, 147 Peter

 

[XBenX]

Should be interesting !!!