Auction Results – July week 1
This week, the clearance rate continues its 3 week slump, nearing parity of clearances and non-clearances. Similarly to last week, there are results of only 43 of 65 scheduled auctions, so perhaps the unrecorded results tell a different story. Whatever the case, based upon these, it is a disappointing week in real estate.
It holds the lowest average selling price since $546,067 in late April and the lowest clearance rate since late May, in which it also slumped to 53%. This is the third consecutive decrease in clearance rate.
In fact, were it not for the four houses which sold prior to an auction, there would be an equal number of properties sold and passed in, the single property withdrawn dragging the clearance rate into a sub-fifty percentage. Thankfully, the early sellers keep the rate above parity.
These disappointing numbers can in part be attributed to a lack of outliers to boost the figures. Only one property cleared $1 million this week, this being 26 Sturdee Street in Linden Park.
Amal Khodair-Vemana of Amkar Real Estate facilitated this sale of this sizeable, prime location home, which will have capped off a lucrative investment for the previous owner. According to data provided by CoreLogic, the property was purchased in 2009 for $655,000, and was rented out at an increasingly lucrative rate for much of the ensuing 8 years. This week-high selling price will likely leave the previous owners very pleased with the return on their investment.
The next-closest sale, 772 Torrens Road in Rosewater, does not clear $900,000, this lack of elevated prices certainly hurting the numbers.
Only two sales occurred across Monday and Tuesday, @realty providing the sale of 59 Fosters Road in Greenacres on Monday, and LJ Hooker handing over the keys of 27 Gertrude Street in Magill on Tuesday, both for undisclosed prices.
On Wednesday, the market was sparse, but consistent, of the five auctions taking place four of them resulted in sales. The most lucrative of these was Real Estate Partners SA’s sale of 11 Ellen Street, Athelstone, for $565,000.
A reserved Thursday, the only recorded real estate activity being the passing in of 12 Gillian Close in Noarlunga Downs, paves the way for a typically busy Friday and Saturday. Of five auctions held on Friday, two resulted in fairly low sales, the conservative $130,000 for 10 Berryman Road, Smithfield Plains the lowest of the week, and three passed in.
Saturday held the remaining three auctions, including the highest of the week, but also 15 properties of the 19 which were passed in, making it a very mixed day in sales.
This week was a disappointingly reserved week of real estate, and one can only hope that the market bounces back over the course of July.