Auctions rebound after Anzac and Easter traffic jam
More resistance to auctions during long weekends than to those going under the hammer in ballot week sees numbers rebound to 2,300.
HOMES going under the hammer have rebounded for Federal Election weekend – with more than 2,300 scheduled.
Though the reason the number is double that of Anzac weekend – and up from the 644 properties auctioned during the long Easter weekend – is because of the school holiday slump.
And auction activity is still significantly down from first weekend of May last year, according to SQM Research managing director Louis Christopher, who is predicting a surge following the election.
“The numbers are up on the previous week, but they are still down overall,” he said.
“The first week of May 2024 in Sydney had 1117 Auctions scheduled.
“For this week Sydney has 817 auctions. The number is down due to the election weekend.
“The previous week was heavily impacted by the ANZAC day public holiday long weekend as well as the various school term holidays.
“I am sure we will record a large jump in the scheduled numbers next week.”
It’s a pattern Adrian William principal Adrian Tsavalas is well aware of.
“The auction volumes this weekend have come off the back of two long weekends and schools coming back,” he said.
“There’s more resistance against long weekends than against the election. So there is a bit of a traffic jam.”
And while there is some resistance to holding an auction on the day of the election, Adrian has noticed an uplift in sentiment and buyer urgency which could see a lift in sales.
“We noticed a bit of an uptick in February the week before the rate call which lasted a few weeks afterwards.
At the last Federal Election, just 317 homes in Sydney were scheduled for sale on election day in May 2022 – dropping from 792 the previous week.
Research by Domain suggests auctions are down an average 50 per cent compared to the weeks running up to ballot day.
Though the property clearance rates are marginally higher, according to the real estate platform.
“Because sellers perceive that many potential buyers are occupied, they anticipate lower auction attendance, dramatically dropping scheduled auction volumes,” the report said.
“The Saturday before an election averages 1568 auctions nationwide, but on election day, this number plunges to just 789, a staggering 50 per cent decline.
“This dip in auction activity doesn’t represent lost demand – it’s simply deferred.
“The following Saturday, auction volumes surge to 1767, marking a 124 per cent increase from election day and a 13 per cent rise compared to the preceding weekend before the election.
“This shift suggests that sellers are strategically postponing auctions in anticipation of better buyer turnout, though it begs the question: Is this assumption truly justified?
“Contrary to popular belief, auctions on election day outperform.
“Data shows that clearance rates average 60.4 per cent on election day, compared to 59.5% the prior Saturday and 59.8 per cent the following Saturday.
“This challenges the notion that election day is a disadvantage. The marginally higher clearance rate likely stems from a smaller auction pool and a more motivated buyer base.”
With fewer auctions competing for attention, buyers who attend on election day are typically more committed, creating a focused environment that benefits sellers.
For sellers, election day may present a unique opportunity. Despite potential logistical challenges, the data indicates that auctions held on this day can yield strong results, making it a viable option for reaching a serious and engaged audience.
