Rate cut propels auction market

Ray White auctions were buzzing across the country today, with Tuesday’s rate cut providing more confidence to the auction market.

Ray White scheduled 485 properties to go under the hammer today, up 28.5 per cent on last week.

With a preliminary clearance rate of 71.7 per cent, it’s clear this week’s rate cut has put some momentum back into the property market.

Ray White agents reported a sense of increased urgency from buyers at auctions this weekend, which is echoed by high bidders numbers, sitting at an average of 4.4 registered bidders and 3.7 active bidders per auction nationally.

The top result for the day went to Ray White Collective agent Tom Lyne who sold 1501/527 Coronation Drive, Toowong, under the hammer for $3.3 million.

The auction with the highest number of bidders went to Ray White Logan City agent Jason Song who recorded 31 registered bidders at his 28 Young Place, Runcorn auction. The property was sold under the hammer for $1.501 million.

According to the market leading prop tech app, NurtureCloud, Ray White held 7,233 open homes across the country today, with 27,068 attendees. The open home with the most attendees was Ray White Unley agent Brett Brook’s listing at 25B Fourth Avenue, Ascot Park, which saw 73 attendees.

SYDNEY

Ray White NSW head of auctions Perry Edmondson-Clark said there was plenty of auction activity this weekend following the latest rate cut.

“Auction volume remains strong with 275 properties scheduled to go under the hammer across NSW this week,” he said.

“There was a heightened feeling of confidence and activity in the market today following on from another rate cut decision by the RBA.

“While we are seeing less new stock come to the market, those of which are on the market currently are experiencing an increased number of registered bidders and a very energetic feel at auctions.”

3/3 Alexander Street, Tamarama

• Sold under the hammer for $2.2 million

• 25 registered bidders, six active

• Lead agent: Angus Gorrie - 0418 282 853

• Ray White Eastern Beaches

“The property has been vacant and in the same condition for the last four years,” Mr Gorrie said.

“While it needed some work, the foundations were good and the location was unmatched.

“The winning bid went to a builder who will renovate the property.”

9 Queen Street, Guildford

• Sold under the hammer for $1.475 million

• 21 registered bidders, five active

• Lead agent: Alexander Sallit - 0450 200 008

• Ray White Parramatta

• Auctioneer: Tim Snell, Ray White NSW CEO

“The majority of the buyers were investors and the winning bid went to an investor,” Mr Sallit said.

“It was a two-lot property so you can build two dwellings on it which is what attracted investors.

“The seller was downsizing and moving to Queensland. They had lived there about 50 years and it had been the family home.”

67A Tower Street, Panania

• Sold under the hammer for $1.35 million

• 10 registered bidders, seven active

• Lead agent: Abir Eddine - 0410 824 432

• Ray White Revesby

• Auctioneer: Bryce Bevan, Ray White

Bidding opened at $1.1 million. The seller (pictured above centre) had been in the home for 12 years and was downsizing. The buyer (pictured above right) recently sold her previous home through Ray White, and was also downsizing.

13 Arlington Street, Rockdale

• Sold under the hammer for $1.875 million

• Three registered bidders, two active

• Lead agent: Nicholas Economos - 0409 553 555

• Ray White Rockdale

• Auctioneer: Alex Pattaro, Ray White

“The buyers are a local couple who were from Ramsgate who were upsizing,” Mr Economos said.

“The sellers were a couple who bought the home in 2021 but are moving closer to family.

“These buyers were engaged weeks ago. I think we will start to notice the impact of the recent rate cut over the next couple of weeks.”

27 Monahan Avenue, Banksia

• Sold under the hammer for $1.61 million

• Five registered, four active

• Lead agent: Nicholas Economos - 0409 553 555

• Ray White Rockdale

• Auctioneer: Alex Pattaro, Ray White

“The winning bid went to a local couple from Ramsgate of home buyers. The home had been in the seller’s family for 60 years,” Mr Economos said.

44 Batavia Ave, Leppington

• Sold under the hammer for $2.616 million

• 12 bidders

• Lead agent: Saby Arora - 0433 336 461

• Ray White Castle Hill

Ray White Castle Hill managing director Phil Kelly said the auction was a highly competitive battle with $1000 separating the top two bidders at the end of the day. He applauded Mr Arora on a superb campaign.

“The vendors gave him the right launching pad with a superbly presented home but significant credit should go to Saby who followed the process perfectly” Mr Kelly said.

“Saby never used a price guide and that allowed for a transparent process where no bidder felt misled but also achieved a result well above expectations.”

MELBOURNE

Ray White Victoria chief auctioneer Jeremy Tyrrell said market activity was improving post rate cut.

“With the sun shining and interest rates declining, the real estate market in Victoria is poised for exciting times ahead as activity is on the rise,” he said.

“Auction volume bounced back this week as we welcome the Judd White Group in Glen Waverley to the Ray White family. In their first month in 'yellow', they have burst out of the blocks with a record breaking 74 auctions scheduled in May, surpassing their previous best month of 52.

“For the greater Ray White group across the state, there were 231 auctions scheduled, a significant increase from last week’s total of 182.

“Whilst it may be too early to feel the effects of the latest interest rate cut, the clearance rate this week indicates otherwise, with 85.5 percent of auction properties selling, a significant increase from last week's clearance rate of 70.7 percent.

“More importantly, the average active bidder count across all auctions has jumped up to a year high of 3.3, a statistic to keep a close eye on.”

39 Stafford Street, Footscray

• Sold under the hammer for $720,000

• Four bidders

• Lead agent/auctioneer: Marcus Fregonese - 0432 732 492

• Ray White Sunshine

“A young local first home buyer bought it looking to renovate and move in, he’s in the building game,” Mr Fregonese said.

“The sellers lived in it for a long time, then they rented, and then it’s been vacant for the last few years. They knew they either had to do the renovation or sell. It was too much work for them so they decided to sell.”

Mr Fregonese said there was renewed confidence in the market following this week’s rate cut.

“We are starting to see enquiry levels increase already and sentiment in the marketplace is very good. It’s bubbling away and the volcano is about to erupt.

“It started with the first interest rate cut, then the election was a distraction, but after the second rate cut people are factoring in future rate cuts and thinking if they don’t get in now they’ll miss out.”

16 Goodwood Crescent, Gladstone Park

• Sold under the hammer for $1.01 million

• 10 registered bidders, six active

• Lead agent/auctioneer: Phillip Mercieca - 0402 419 827

• Ray White Gladstone Park

Mr Mercieca said bidding was fierce after opening at $830,000.

“The winning bid went to a family of four (pictured above) who had been looking to upsize for a long time, so they were incredibly excited,” he said.

“We had lots of interest from young families as well as second and third home buyers.

“The vendors were ecstatic with the result as well.

“The market is alive and well and demand is outstripping supply at the moment which is pushing prices up.

“Hopefully we see more listings come on to meet the demand we’re getting, but we’re definitely seeing more confidence from buyers.”

7 Midway Street, Mount Waverley

• Sold under the hammer for $1.865 million

• Seven bidders

• Lead agent/auctioneer: Andrew Dimashki - 0401 457 755

• Ray White Judd White Group

“The sellers had lived in the home for 45 years and raised their family there, and were now looking to downsize to an apartment,” Mr Dimashki said.

“The purchasers were a couple of soon-to-be parents who were upsizing from an apartment.”

4/55 Moonya Road, Carnegie

• Sold under the hammer for $860,000

• Three bidders

• Lead agent: Andris Crawford - 0402 306 644

• Ray White Carnegie

• Auctioneer: Matt Condon, Ray White

“The winning bid went to first home buyers. We also had interest from downsizers and young families,” Mr Crawford said

“The sellers had it as an investment.

“The numbers through our opens this morning have improved, but it’s quite early to see the full effects of this week’s rate cut. It will be interesting to see what happens over the rest of the weekend and early next week.”

5 Sunnybrook Dr, Wheelers Hill

• Sold under the hammer for $1.856 million

• Seven bidders

• Lead agent: Ron Kohli - 0433 952 929

• Ray White Judd White Group

Bidding opened at $1.4 million and the home was called on the market at $1.55 million.

“The winning bid went to a young family who were upsizing,” Mr Kohli said.

“The seller had been here 52 years, it’s a one-owner home. They are now moving into retirement.

“We had a mix of home buyers as well as people looking to knock down and rebuild due to land value.”

4/55 Moonya Road, Carnegie

• Sold under the hammer for $860,000

• Three bidders

• Lead agent: Andris Crawford - 0402 306 644

• Ray White Carnegie

• Auctioneer: Matt Condon, Ray White

“The winning bid went to first home buyers. We also had interest from downsizers and young families,” Mr Crawford said

“The sellers had it as an investment.

“The numbers through our opens this morning have improved, but it’s quite early to see the full effects of this week’s rate cut. It will be interesting to see what happens over the rest of the weekend and early next week.”

24 Stoneleigh Place, Craigieburn

• Sold under the hammer $700,000

• Five bidders

• Lead agent/auctioneer: Trish Orrico - 0423 336 636

• Ray White Craigieburn

“The buyer was an interstate investor from Sydney who was bidding over the hammer. We had two interstate investors bidding and the rest were home buyers,” Ms Orrico said.

“The sellers (pictured above) were a young family who had been there a while and had done a renovation. They were looking to move to the countryside for more space.”

35 Marriott Street, Parkdale

• Sod under the hammer for $1.68 million

• Four bidders

• Lead agent/auctioneer: Kevin Chokshi

• Ray White Bayside Group

“The buyers were a young family from Bentleigh East buying their first home,” Mr Chokshi said.

“The seller had lived there for 30 years and was downsizing.

“The rate cut this week definitely seems to have created a level of urgency around people wanting to buy before prices increase further.”

40 Garfield Street, Cheltenham

• Sold under the hammer for $1.6 million

• Four bidders

• Lead agent/auctioneer: Angela Limanis - 0414 664 374

• Ray White Bayside Group

“The buyer was an investor who only saw it for the first time today. He had an understanding of the potential for future development in this growth zone,” Ms Limanis said.

“The sellers had plans drawn up for an extension with a pool and they were about to pull the trigger but then they came across their dream home and decided to buy through me instead.

“We had interest bubbling on this home from the get go, but I think the rate cut has really instilled a bit more confidence in the market.”

22A Armata Crescent, Frankston North

• Sold under the hammer for $610,000

• Three bidders

• Lead agent: George Devic - 0400 022 192

• Ray White Frankston

The vendor was an investor from interstate.

“The purchaser was a local from Frankston South buying their first home. They fought it out with an interstate investor from Sydney in a rigorous auction,” Mr Devic said.

6/11 Second Street, Clayton South

• Sold under the hammer for $1.07 million

• Six bidders

• Agent: Peter Liu and Andy Chong (pictured above with sellers)

• Ray White Oakleigh

26 Liverpool Circuit, Craigieburn

• Sold under the hammer for $715,000

• Four bidders

• Lead agent/auctioneer: Trish Orrico - 0423 336 636

• Ray White Craigieburn

“This was an investment property for the sellers, but the buyers were a young couple of first home buyers,” Ms Orrico said.

25 Kiama Drive, Lalor

• Sold under the hammer for $869,000

• Five registered bidders, four active

• Lead agent: Tan Ngyuen

• Ray White Thomastown

14 Jinchilla Avenue, Frankston South

• Sold under the hammer for $1.115 million

• Three bidders

• Lead agent: Ashley Weston

• Ray White Frankston

The sellers were investors who moved into the property whilst renovating their principal place of residence. It was purchased by an investor from Sydney.

BRISBANE

Ray White Queensland chief auctioneer Gavin Croft said buyer activity at auctions had witnessed a noticeable increase.

“There’s been a really interesting change in the pre and post election market right across south east Queensland,” Mr Croft said.

“We’re seeing increased energy and urgency starting to emerge on auction floors across the state.

“Pre-election clearance rates came in at 51 per cent with an average registered bidders of 3.7, post-election clearance rates have surpassed 70 per cent with an average registered bidders of 5.1 registered bidders.”