Plenty of buyers were out in force at this South Geelong auction last weekend. Picture: Mike Dugdale
Sellers also pocketed on average nearly $25,000 above expectation when selling at auction, compared to $8446 at private sale.
Realestate.com.au chief economist Nerida Conisbee said the trends show that auction sales were as effective during the downturn in the market as in a booming market.
Auction sales achieved an average $648,796 in 2019, compared to $637,483 for private sales.
Homes sold at auction spent 28 days on market, while private sales ballooned to 89 days, as separate CoreLogic data shows hundreds of stale listings remained on the market.
While new listings were down, Ms Conisbee said people researching property was 25 per cent higher.
Lara agent Terry Cleary said auction campaigns create a sense of urgency for buyers. Picture: Alison Wynd
“That ultimately is what is going to force up value,” she said.
“Scarce stock creates a pretty simply supply and demand equation.
“At the moment we are seeing some pretty outstanding auction results. We’ve had a couple of situations in Sydney and Melbourne of $200,000 to $300,000 over reserve, so there’s no doubt that lack of stock is driving people to fewer homes.”
There have been big results in Geelong too, with an East Geelong house last week selling $175,000 over reserve, while 11 bidders contested a South Geelong property, which sold $90,000 above expectations.
Ray White, Lara agent Terry Cleary said auctions created an urgency to sell a property, important in a suburb like Lara where there’s lots of stock on the market.
Geelong agent Nicole Andrews has listed this Park Crescent, South Geelong bungalow for auction on auction August 31. Price hopes are $490,000 to $520,000.
“Data we’re keeping strongly suggests that days on market for properties that are not going to auction are in the early 60s. But for properties that go to auction it’s 29 days,” Mr Cleary said.
“The reality is if you go to market without a price on the property, the buyers are judging the property on its merit,” he said.
CoreLogic figures show Geelong auctions have maintained a 52 per cent clearance rate in 2019 amid the drop in the market.
Eastwood Andrews, Geelong agent Nicole Andrews, has listed a South Geelong property for auction because the california bungalow’s location attracted so many buying groups and it suited the needs of the separate family members.
Ms Andrews said most interested buyers have indicated they wanted to renovate the home’s original interior.
The three-bedroom house at 6 Park Crescent is ripe for renovation or redevelopment (a pair of townhouses is under construction next door).
“You can walk to the Barwon River, walk into town. Everyone parks here and walks into town, it’s a great spot. And the train station is what attracts the Melbourne buyers,” Ms Andrews said.
“One up the road sold for over $1 million, so the figures are there to do a renovation.
“The family were thinking it will be only attract people who want to knock it down, but I’ve only had one that was thinking of knocking it down — most of them are wanting to get in and renovate.
The 379sq m property goes to auction on August 31 with price hopes from $490,000 to $520,000.
GEELONG’S TOP AUCTION SUBURBS
(No of auctions)
|Barwon Heads||50% (6)||$950,000|
|Bell Park||58% (12)||$451,000|
|East Geelong||60% (28)||$600,000|
|Geelong West||47% (44)||$685,000|
|Hamlyn Heights||50% (30)||$540,000|
|Herne Hill||53% (15)||$545,000|
|Manifold Heights||72% (11)||$732,500|
|North Geelong||83% (7)||$476,000|
|Ocean Grove||42% (14)||$690,000|
|South Geelong||66% (12)||$650,000|
|St Leonards||50% (8)||$565,000|