Real Estate Wrap with Leanne Pilkington

Welcome to this week’s Real Estate Wrap with Leanne Pilkington, CEO of Laing+Simmons and President of the Real Estate Institute of Australia. As we approach the Melbourne Cup Carnival, next week’s auction volumes are anticipated to drop to around 2,100, which may provide a more tempered atmosphere for those in the market.

Here’s a look at the major takeaways:

• Record Auction Numbers: With over 3,190 auctions across capital cities, this is the second busiest week of 2024, making it a pivotal time for sellers and buyers alike.
• Clearance Rate Challenges: A preliminary clearance rate of 64.5% in Sydney reflects the gap between vendor expectations and buyer willingness, with agents working closely to align both.
• Regional Highlights: The Inner West saw the highest clearance rates at 75.5%, while regions like the Southwest faced challenges, recording a 48.3% clearance rate.

This week’s insight offers essential guidance for buyers, sellers, and investors. For sellers, understanding market conditions can help set realistic expectations, while buyers may find opportunities where clearance rates indicate more favourable terms. For investors, regional data provides a view into competitive and emerging markets.

Stay tuned as we continue to keep you updated on what’s happening in the market!

Transcript

Hey everyone Leanne Pilkington with you for the Real Estate Wrap the week ending the 27th of October. It was the largest number of auctions across the nation since the week before Easter. This weekend in Sydney, however, it was the fifth highest number of auctions at 987. We had a preliminary clearance rate of 64.5% which is the second lowest preliminary clearance rate we’ve had this year. Last weekend, 974 properties went up for auction, final clearance rate of 60.6% which is a big drop from the 70.5% preliminary clearance rate that we had last week, and same weekend last year, 1,071 properties at a 64.2% clearance rate. Our auctioneers are telling us that vendors’ expectations are higher than what many of the buyers are willing to pay, and the agents that are managing those expectations effectively, and doing a great education process throughout the campaign, are the ones that are getting the reasonable clearance rates. So if you don’t know how to have those conversations, definitely reach out to someone who can help. Central Coast: 29 properties at 42.1% preliminary clearance rate, Blue Mountains: 4 properties from 11, Newcastle: 29 at 61.5% and the Illawarra: 32 at a 60.7% clearance rate. The lowest is in the Southwest at 48.3%. Our highest clearance rate was the Inner West at 75.5%. Have an awesome week and I will see you from a new destination next week, bye.

Source: CoreLogic Australia.