Australian auction volumes surpass 4000 for first time as sellers cash in

Homeowners are racing to take advantage of soaring house prices ahead of expected price falls in 2022 with auction volumes set to surpass 4000 for the first time.

Australian homeowners are racing to take advantage of soaring property prices with auction levels set to surpass all-time highs this week.

The volume of scheduled auctions is set to surpass 4000 for the first time in Australia, making it the busiest auction week since CoreLogic records commenced in 2008.

CoreLogic reports 4354 capital city properties are due to go to auction, eclipsing the previous high of 3990 held on the week ending March 25 in 2018.

Sydney, Canberra and Adelaide will reach new highs this weekend as sellers look to capitalise on strong market conditions ahead of expected price falls likely to begin from as soon as the middle of 2022.

CoreLogic research analyst Kaytlin Ezzy said record high auction volumes were being driven by seasonal trends, favourable selling conditions and strong seller confidence due to unprecedented buyer demand this year.

“With prospective buyers outweighing listed properties, more vendors are using auctions to harness the competitive tension in the market and help get the best possible price for their property,” she said.

The number of auctions fall through July and August due to multiple lockdowns on the east coast, before hitting a low in early September, when 1423 homes were taken to auction. Since then numbers have risen by more than 200 per cent.

The high number of properties going under the hammer has started to subside heated competition seen between buyers for most part of 2021, which has since resulted in declining clearance rates.

Sydney, Canberra and Adelaide will all surpass previous highs.

The clearance rate dropped to 70.3 per cent last week after a peak of 83.2 per cent in early October. Sydney, traditionally Australia’s strongest market, saw its clearance rate drop to 68.7 per cent last week — its lowest all year.

Melbourne is scheduled to hold the most auctions this week with 1898 scheduled — 14.5 per cent more than last week. Across Sydney 1656 auctions are locked in, making it Sydney’s busiest auction week ever.

Adelaide and Canberra are set to overtake last week’s highs to again set records with 308 and 183 auctions scheduled respectively. Perth is also expecting its busiest week this year with 47 auctions scheduled, while Brisbane will have 260. Two homes are scheduled to go under the hammer across Tasmania.

SQM Research revealed on Thursday that house prices in Sydney and Melbourne could begin to fall from as early as mid 2022, while CBA forecasted on Monday prices would peak in late 2022 before falling by about 10 per cent in 2023.

The spring selling season, generally considered the most popular time of year to sell, began late this year due to extended lockdowns in multiple cities. Ms Ezzy said this expected to see auctions held right up until Christmas, with preliminary data showing the week ending December 12 was likely to break this weekend’s expected record.