Auctions Cooling - Damien Cooley
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What signs indicate that auctions are cooling?
it's the real estate podcast brought to you by ray white the largest real estate and property group in australasia and welcome to another episode of the real estate podcast available on iheart radio and also spotify and apple podcasts or wherever you get your podcast from well if course we are starting to hear that auctions are cooling somewhat so what is happening on the ground inside auctions well shortly we're going to be talking with a leading australian auction company and to damien cooley for his take on what's going on a reminder on friday we've got rich harvey back from property buyer it's all part of the series of let's talk property and part of your real estate breakfast
It's the main centre forecast with propertybuyer.com.au.
Yes, let's have a look at the weather forecast. And for Sydney, expecting a few showers with 22 degrees. Melbourne, partly cloudy with 21. Brisbane, expecting a few showers with 25 degrees.
How has the number of active bidders changed recently?
And in Perth, a sunny day with 27 degrees. Well, the Real Estate Breakfast Club is on its way. Thank you for more of your emails. All you need to do is email us to myrealestatepodcast at gmail.com and in the header, write the Real Estate Breakfast Club. That email address again is myrealestatepodcast at gmail.com.
We feature market updates, interviews and trends. It's your real estate podcast for breakfast.
Well, we are starting to hear about the average number of bidders at auction time has fallen below a key threshold that at the moment is suggesting property price growth is starting to level off.
What factors influence auction clearance rates?
There were at least 3.5 active bidders per auction for much of last winter and spring in Sydney and Melbourne, but bidders numbers have have dropped below this level for 2022 and a sign that the market is easing. That's according to some new Ray White figures. Auctioneer Damien Cooley has seen bitter numbers ease since the peak of the property market and he is joining us now. Good morning, Damien. Welcome to the Real Estate Podcast. Good to have you on. Great to be here, Craig.
How does the current market compare to previous booms?
Thanks very much for having me. Yeah. So in order to have strong competition at auctions, you need to have active bidders. And with that figure that I just mentioned of 3.5 bidders, that helps everything move along. So you're starting to see that that is dropping perhaps for our audience. Just give us a sense of what's been trending lately that you've seen around these active bidder numbers.
Yeah, so markets are driven by a number of things and we collect auction data that really signifies how the market is tracking. One piece of information is what we call auction clearance rates.
What impact does supply and demand have on property prices?
An auction clearance rate is the percentage of property that sells either before or on the day of the auction compared to what property is actually being listed to go to auction on any given date. Another piece of information that we use is how many buyers are actually registering at auction and how many of those buyers are actively bidding at auction. So there's a few things that I'll just touch on now that signify change in market. One of those is that auction clearance rates have reduced, come off their highs. We look at a market and we say a normal real estate market has an auction clearance rate between 50 and 60%, a good market between 60 and 70%, a strong market is above 70% to 80%, and a boom market is 80% plus.
We've come out of the back of arguably one of the largest real estate booms in the country's history. We're now just at the moment sitting in what we define as a good market, and that's a clearance rate sort of between 60 and 70%. The average number of bidders in that boom market, we saw even post lockdown periods,
How are buyer behaviors shifting in the current market?
We were averaging upwards of seven, in some cases 10, not necessarily active, but 10 bidders at every auction. Whereas now we look at even the weekend just gone past, our company had almost 100 auctions on Saturday and we averaged just over four bidders at every auction. There are different markets within markets. So we speak generally, but every market has its own little micro market.
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Chapters
8 chapters
1
What signs indicate that auctions are cooling?
0:02–1:06
2
How has the number of active bidders changed recently?
1:06–1:52
3
What factors influence auction clearance rates?
1:52–2:24
4
How does the current market compare to previous booms?
2:24–3:00
5
What impact does supply and demand have on property prices?
3:00–4:04
6
How are buyer behaviors shifting in the current market?
4:04–4:55
7
What strategies are auctioneers using in today's market?
4:55–5:45
8
What insights can we gain about the future of the property market?
5:45–12:27
Speakers
3 identifiedMore from Aussie Real Estate Podcast
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