This is when you should auction your house to get the best price

26 views 2022-03-28 14:35:32

Houses auctioned during the weekend delivered 10 per cent higher prices to vendors nationwide last year compared to homes sold under the hammer during the week, data from Domain shows.

But the gap has narrowed dramatically from the peak of 32 per cent in 2018-2019 as online bidding and flexible working conditions became the norm.

Last year, weekend auctions for houses outperformed the mid-week results across most capitals, with Adelaide notching up 18.6 per cent higher prices, followed by Canberra with 10.2 per cent.

Sydney bucked the trend, with houses auctioned on Saturdays and Sundays achieving 11 per cent less compared to the weekday results.

Nicola Powell, Domain’s chief of research and economics, said this was probably due to a higher number of expensive homes selling during the week rather than the weekend.

“It is important to note that this does not mean selling your house on a weekend will provide a higher price, it is likely a reflection of the types of homes that are more likely to sell and the price band of those homes,” she said.

“It could suggest, however, that houses with a higher asking price have a greater chance of selling at a weekend, while for units this is midweek.”

Defying perceptions

While Australia has been dominated by weekend auctions in the past five years, with 82 per cent occurring on a Saturday or Sunday, the share of midweek auctions had ramped up dramatically.

During that period, the proportion of midweek auctions has doubled to about a quarter of all auctions nationwide, with nearly a third of auctions in Brisbane held during the week.

Brisbane-based auctioneer Justin Nickerson of Apollo Auctions said weekday auctions had achieved better results for vendors compared to the weekends.

“Statistically our best day in terms of clearance rate, average number of registered bidders and attendance is a Friday,” he said.

“Thursday is our second-best day of auctions followed by the weekend. So, this defies people’s perception that Saturday is the best day to auction a home.”

In Melbourne, the share of midweek auctions climbed to 13 per cent of all auctions, up from 9 per cent between 2017 and 2020, while Sydney rose by 2 percentage points to 22 per cent. Canberra rose to 26 per cent and Adelaide at 24 per cent.

“In 2021, the shift towards midweek auctions became more apparent in all cities, but particularly so in Sydney, Melbourne and Brisbane,” said Dr Powell.

“There is no denying that midweek auctions are something to keep an eye on, and we’re expecting to see this trend continue, leading to increased access and opportunities for buyers to bid on their next home.”

While sellers still had an 11 per cent higher chance of success if they went to auction on a Saturday or Sunday last year, midweek auctions have enjoyed a greater improvement in their clearance rate compared to the weekend in recent years.

Last year, the success rate for midweek auctions across the combined capitals had risen to 61 per cent from 43 per cent in 2020, with Thursday auctions achieving 56.6 per cent.

The number of homes selling under the hammer surged to 115,600 last year – the highest volume on Domain’s record.

Canberra has overtaken Melbourne as the most auction-centric market with the highest proportion of sales by auctions. Auction volumes have tripled in Brisbane and almost doubled in Sydney and Melbourne.

Over 2021, every capital city achieved a higher median price at auction compared to private treaty.

In particular, auctions in Brisbane delivered 66 per cent higher price for houses and 42 per cent more for units compared to private treaty, closely followed by Sydney with 63 per cent price for houses and 41 per cent for units.

This article is from Australian Financial Review, please click the following link for the original article: https://www.afr.com/property/residential/this-is-when-you-should-auction-your-house-to-get-the-best-price-20220324-p5a7go

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