Auction results are showing the increased listing volume during the last several weeks has failed to impact on buyer demand. According to Domain, on 10 October there were 58 confirmed auction results of which 47 had sold, achieving a gross sales value of $38,971,100. Even more impressive, the preliminary auction clearance rate was 81%. This is up from what is widely regarded as a very acceptable clearance rate of 70% this time last year.
Of these sales, two auction campaigns were run by a colleague in my office which exceeded the vendors’ reserves collectively by over $150,000. Initially, these reserves appeared on the ambitious side, however, insatiable buyer demand for well-located properties achieved far greater than expected sales results. Buyers bidding must seriously fear the alternative of not securing their new home at the fall of the hammer.
Vendors seeking to have their property sold prior to Christmas are facing a rapidly closing window of opportunity. For a vendor starting the process to have their property ready for the market, assuming they began on 15 October, a contract realistically would not be ready to allow their property to be advertised for sale prior to November. To have the opportunity to sell in 2020, vendors need to act now.
Individually, agents all have their own perspective on if there is any value having properties for sale during the December-January holiday season. This generally has more to do with the vendor and their agent’s plans, rather than the state of the market. I anticipate likely reduced interstate or overseas travel opportunities won’t cause the typical seasonal exodus from Canberra this year. Should this eventuate, those selling properties may find themselves in a position where market conditions are effectively ‘business as usual’.
Having worked many holiday seasons, it never ceases to amaze me how many people are actively looking to buy properties during that time of year. On reflection, I suspect this was due to being responsive to enquiry combined with prospective purchasers expecting to demonstrate their capacity to perform as a qualified buyer – almost identical to vendor and agent expectations during restrictions imposed by the ACT Government from late March in response to COVID-19.
With Sam Dodimead, local property professional and host of Canberra Property Podcast where you can get to know the consultants contributing toward deliver of new buildings. Stream from wherever you listen to podcasts.
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