The REIV reported 223 auctions over the weekend producing a clearance rate of 99%. Of the 223 auctions, 100 sold at auction, 120 sold before auction and 1 after auction. 441 were withdrawn and 634 postponed. In addition, there were 144 private sales.
With no end in sight to lockdown ending, it is looking more likely that the busy spring period for real estate will be pushed out to summer with some selling agents suggesting that auctions could run as late as the 23rd and 24th of December. The length of auction campaigns could be shortened from four weeks to three weeks and perhaps even two weeks if enough interest can be generated. We should see an increase in stock at the cessation of lockdown due to some vendors holding off launching their campaigns but also selling agents are appraising and listing properties via virtual inspection.
Some vendors are pushing on with the sale of their property by offering virtual tours via zoom to prospective buyers. I attended one of these over the weekend and it worked very well. This can only occur at properties where either a tenant or vendor are currently living there as no one is able to attend a vacant property to film. While the vendor walks their camera through the property room by room, the selling agent narrates in the background. Whilst this is obviously not as good as inspecting in person, it is the best that can be offered in the current environment. If a buyer chose to purchase this way, a building inspection (which are allowed) should be conducted to ensure any issues with the property are found.
3 Collis Street, Brighton East sold via virtual auction on Saturday to a buyer who had not physically inspected the property. The property only had a short period of time for physical inspections prior to lockdown so inspections were converted to online with the vendors walking through prospective purchasers in the lead up to auction. The auction attracted five bidders and smashed the reserve of $3,950,000 selling for $4,362,000 to a buyer who had not physically seen the property.
Have a great week.