Autumn Snapshot of the Property Market
Autumn snapshot of the Property Market from Jason Andrew Auctioneers – the JA team are closely involved with thousands of auctions every year. But rather than just turning up, calling the auction and leaving, JA’s involvement starts long before with training and mentoring partner agents to maximise the sales success.
Autumn Market Snapshot – from JA Auctioneers
We’ve just finished collating our autumn data and as always, it tells an interesting story. During March, buyer activity was at its lowest level for the quarter with average buyer registrations at just .67. Regardless, the clearance remained relatively strong at 46%. In April, registrations almost doubled to 1.21, but the clearance rate continued falling to 41.8%. After the Reserve Bank’s interest rate cut in early May however, average registrations rose again to 1.4, all of the pieces of the puzzle fell into place and the clearance spiked at 56.7%.
On the supply side of the equation, forced sales were on the rise, up from 63% in the summer quarter to 71% in the autumn quarter. The average shift required in the vendor’s reserve price to achieve a sale under the hammer also rose from 5.4% to 7%. Meanwhile the average recorded sale price fell dramatically from $734K to just $489K, indicating the bulk of activity during the quarter was in the lower price segments. Nevertheless, year-on-year, the autumn 2012 clearance was almost double the 26% achieved during the same period in 2011.
Perhaps the most interesting trend identified in this latest quarter was the relationship between the number of inspections and the likelihood of receiving a pre-auction offer. The average number of inspections was 18.5, while the average number of inspections required to generate an offer was 26.4. Moreover, where no prior offers were received, the clearance rate was 39.5%, rising to 53% with one prior offer and a high of 77% with two or more offers.
The overall JA clearance rate of 48% was just 1% down on the previous quarter but once again, significantly higher than the RP Data overall market clearance rate of 24%. While JA now conducts almost one in six auctions across South East Queensland, we are the auctioneer for more than one in four properties that actually sell under the hammer.
This data only highlights the importance of vendors engaging experienced and capable professionals to assist with their property sale – agents who can drive inspections, gather an abundance of quality information from buyers and deliver it back to their vendors in a digestible format, enabling them to make good selling decisions… Visit the Jason Andrews Auctioneers website
Auctions are a fantastic process to find out what the market thinks of your property and creates a deadline for a buyer purchase thereby putting control of the sale back into a sellers hands. Not all Auctions sell on the day under the hammer, but in the overall days on market and like for like, Auctioned properties do sell in shorter periods of time and spend less overall time on the market. Whether it be on the day or soon after, auctioning a home is a good means whereby to sell a property.
Give me a call on 0432 66 44 38 if you would like more information about Auction.
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