REVEALED: Snapshot into Gympie property auction action
RECENT CoreLogic auction data on Brisbane shows auction clearance rates are at an all time high, and the same can be said for figures from Gympie.
Auctioneer for The Professionals Gympie, Rob May, said he's been keeping a close eye on the local auction scene for the past 14 years.
He said he estimates the general clearance rate in Gympie at around 50 per cent, but he thinks this is up from the December norm, which he said would be in the mid 20s to 30s.
But, without "mortgagee in possession” sales figures, the number would be closer to the mid 70s.
He said the "mortgagee in possession” figures tended to drag the clearance rates down because the banks often place too high a market value on their properties, and agents are not able to guide the seller to an appropriate price relevant to the local market.
Without those figures, Mr May said The Professionals achieved a 100 per cent clearance in August.
"We select the properties we want to auction as the ones that will create the most competition or those that are a wee bit different from the norm,” Mr May said.
With the mortgagee in possession figures in place he estimates his firm's clearance rates at around 60 per cent.
Mr May said small acreage properties are particularly desirable to go under the hammer and properties valued at under $600,000 are also in favour.
Those buying at auction at the moment tend to be buyers from Brisbane, the Sunshine and Gold Coast impressed by the improved Bruce Highway and the new bypass.
He said it was his experience that onsite auctions tended to do better than in-room auctions.
This is because with onsite, there is only the one auction on the agenda, so the atmosphere is more relaxed, whereas in-room auctions have several properties to sell so time is more of a factor.
"I'd say only around 25 per cent would be sold in rooms but onsite would be 50 per cent and above.
"In rooms they tend to miss the moment,” he said.
John Cochrane from Gympie Regional Realty and Noosa Regional Realty said auctions are a good "barometer” of the property market in general.
"It's public and it tells you what the real value of the property is,” Mr Cochrane said.
He said his agencies had around a 75 per cent clearance rate, having sold 69 properties from the nearly 100 listed in the last six months.