Property experts reveal reason behind SA’s auction slowdown

Fewer sellers have chosen to take their homes to auction over the past six weeks compared to the same time last year despite a surge expected in spring.

Property experts say there are several factors that caused a slowdown but numbers would likely pick back up over the coming weeks.

There were 121 auctions scheduled across SA in the first week of spring, according to PropTrack data, which was down 22 per cent on the previous year.

Of those, 114 were in Adelaide, which was down 24 per cent year-on-year, and seven were in regional SA, which in contrast was up 17 per cent.

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Auctions have been down across SA over the past six weeks. Picture David Clark

The following week, there were 127 auctions scheduled to take place across the state, 24 per cent fewer than the previous year.

A similar pattern occurred over the next few weeks, while this week there are 132 scheduled, which is still down 20 per cent on the previous year.

Of those, 123 are in Adelaide, a 22 per cent decrease on the same time last year, and 9 are in regional SA, a 13 per cent increase during the same period.

Ray White SA chief auctioneer John Morris said the AFL grand final and public holiday the following weekend were largely to blame.

“A lot of it is to do with the long weekend and the grand final,” he said.

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Ray White SA chief auctioneer John Morris.

“When it was looking likely the Crows were going to get in the grand final, people were saying, ‘hold off, hold off!’

“A lot of people have held off.”

Mr Morris said Ray White, which had the majority auction market share in SA, still had very high clearance rates – close to 90 per cent last weekend – despite having slightly fewer auctions.

Meanwhile, Harris Real Estate agent and auctioneer Tom Hector said a lack of new stock was also contributing to fewer auctions being scheduled.

“Supply is a big issue,” he said.

“Sourcing listings is very difficult because they’re selling like hot cakes.

“The amount of properties being turned over in SA right now has been low for months.”

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Harris Real Estate agent and auctioneer Tom Hector.

However, Mr Hector said they were expecting bookings to pick up now the weather was heating up and the long weekend was out of the way.

“We launched 14 properties last week,” he said.

Both Mr Morris and Mr Hector said auction was still the most transparent way to buy and sell property.

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