‘Absolute chaos’: Rate cuts have instant impact on auctions

Following the RBA’s latest cash rate cut, bidders flocked to auctions around Sydney in droves over the weekend.

Auctioneers saw some of their busiest auctions of the year in terms of turnouts and bidding activity, leading to homes selling well beyond their reserves.

Sydney hosted 720 auctions last week, a near 30 per cent jump in volume relative to the week prior.

It was another consecutive week of clearance rates above 70 per cent, with preliminary figures showing three quarters of auctions last week produced a sale.

This home on Attunga Rd, Yowie Bay drew over 141 bids on Saturday.

Ray White NSW Head of Auctions Dave McMahon said this uptick in volume coincided with growth in buyer confidence.

“Post the interest rate cut, we’ve seen a resurgence in buyer confidence averaging 5.5 registered with 3.3 active per auction which should provide our sellers with confidence,” he said.

“Interestingly, I’ve experienced an increase in hesitation to open the bidding but once the first bid is placed the auctions quickly pick up pace.”

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Inside the Attunga Rd home.

An auction on Attunga Rd, Yowie Bay saw an astounding 141 bids, in what Mr McMahon said was the strongest bidding activity he had seen this year.

The three-storey family home sold under the hammer for $3.3m, a price $300,000 over reserve.

The marathon auction lasted 45 minutes with 141 bids in total, eventually being won by a local family.

There were four registered bidders, with all of them participating in the lengthy auction.

Selling agent Matt Debreczeni of Ray White Sutherland Shire said his sellers were “stoked with the result.”

“The sellers are downsizing in the same area while the buyers are a young family from down the road,” he said.

“We had two locals and two bidders from out of the area. The locals bought it, they have a big property, a block of land nearby and now they are going to move in here and just do some work on it.”

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This Roseville home sold for $800,000 over reserve.

Scerri Auctions auctioneer Chris Scerri said the rate cut had a demonstrable impact on the weekend’s auctions.

“The rate cut certainly has done what we anticipated to give more confidence and it’s a good opportunity,” he said.

“People know that the market may start increasing price-wise so they’re just trying to get in the quickest they can.

“At the moment it’s certainly allowing people who have gotten on the market prior to anyone else to get the jump on them.”

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The auction for this home on Moncur Ave, Belmore drew a huge crowd.

One of Mr Scerri’s auctions, a home in Roseville, sold for $800,000 over reserve.

The home on Arrunga Ave, listed for the first time in 30 years, sold for $4.6m.

Mr Scerri said the auction was a “packed house” that was “absolute chaos” as 13 registered bidders battled it out for the five-bedroom property.

The crowd for Chris Scerri’s auction at Moncur Ave, Belmore. Picture: Scerri Auctions.

There was another busy auction for Mr Scerri on Moncur Ave, Belmore, where he said between 70 and 80 people were in attendance.

The home sold for $2.08m, $308,000 over reserve.

Mr Scerri said the home was bought by first-home buyers as an investment property.

MORE TO COME…

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