Based on Reported Auction Results*
Successful Sales Level Continues
With the exception of a bumper last week in October, Spring numbers of auction sales were down slightly on previous years at this time of year. A healthy percentage success rate in the mid seventies was however maintained. To those in the industry familiar with the nuances of auction quoting, this outcome reflects well on the strength of the market. As discussed previously, ”quoting” pre-auction price ranges at higher levels in general has a flattening effect on outcomes. This is because it deters more buyers from inspecting and thus those that may have become interested in a property and reviewed their budget upwards, are now deprived of this temptation. The poor vendor who pays the money for the sale process … and ultimately some buyers, are disadvantaged. Thank you government for this initiative!
The anticipated result of this new regime of quoting is to lower the number of interested parties at an auction. Fewer numbers generally will translate into less likelihood of a successful outcome on auction day for the seller. The good news recently is the result level has been essentially maintained. The not so good news is, anecdotally, agents are reporting fewer bidders. Therein lies the real fragility of the situation. More sales would have been harder to get across the line if there had only one or two interested parties present on the Saturday in question. So far, touch wood, the market is strong enough to absorb this misunderstood by most (and particularly by those responsible for introducing it) restrictive marketing practice.
The run home to Christmas should maintain a strong success rate. Buyers are naturally keen to get their house hunting sorted out before the long break if possible. We will watch with interest to see how next year’s property market begins. Unless there is great change in the world situation, more of the same is anticipated.
From Renowden Buyers Advocates, a Merry Christmas to All … and a Safe and Happy New Year in 2018