Should you still sell at auction in a cooling market?

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Homes taken to auction drew an average 2.9 active bidders nationally last month, Ray White figures show, down from a monthly peak of 4.1 active bidders in September Domaincomau

Auctions drew an average of 2.9 active bidders last month, Ray White figures show, the first time the national average fell below three bidders since 2020

Meanwhile, properties sold via auction in April attracted 11.9 per cent more than the highest pre-auction offer received, down from the 14.8 per cent peak in August last year. In Melbourne and Sydney, auctions drew an average of 3 and 2.8 active bidders respectively, down from average monthly peaks of 4 and 4.5 bidders last year, and below their average of 3.2 active bidders.Melbourne properties sold for 12.3 per cent above their highest pre-auction offer, nudging just above the 12.2 per cent average, while Sydney homes sold for a 10.9 per cent premium, down from an 11.4 per cent average.

Sydney’s preliminary auction clearance rate dropped to 58.5 per cent on Saturday, Domain Group data shows, while Melbourne’s fell to 60.1 per cent. A clearance rate of 60 per cent is roughly correlated with a balanced market.Sydney auctioneer Michael Garofolo, of Cooley Auctions, said buyer turnout had pulled back as increased supply gave house hunters more choice in recent months, with record volumes of homes scheduled for auction.

 

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