A recent surge in properties selling ahead of scheduled auctions could point to a potential swing in the Brisbane market, according to agents and auctioneers.
Owner of Apollo Auctions Justin Nickerson said he’d seen a three-fold increase over the past two months from five per cent of homes selling ahead of auction in Queensland, to nearly 15 per cent.
Mr Nickerson said the primary reason for the surge was because of the looming Christmas period.
“There’s always a bit of a seasonal reason,” he said. “We notice this a bit around before Easter as well. People want to have it married and done before the holidays.”
Both buyers and sellers can be impatient at this time of year, Mr Nickerson said. Buyers are keen to have their new home in time for Christmas, and sellers can be keen to avoid a stressful auction day and potentially leaving their home on the market into the new year.
“The major worry from a seller’s point of view is they don’t want to go through the stress of the day. They don’t want it to not sell and feel like it’s a failure,” he said.
Mr Nickerson warned against vendors rushing to accept offers prior to auction however, because it can give buyers the upper hand. “For the sellers, the two things they’ve got to a achieve is a price they’re comfortable with and peace of mind.” Related: “Overly confident” Aussies rate themselves financially savvyRelated: Inside Brisbane rentals that cost as much as a $2m homeRelated: What Queensland homeowners can expect under Palaszczuk
To give sellers peace of mind, buyers need to make sure their price is enough to take the gamble of an auction off the table, Mr Nickerson said.
“Buyers need to know they’ll be paying a premium to secure the property without competition.”
That’s why it’s an indication the market is about to pick up. For so many properties to sell before going under the hammer, buyers must know they face serious competition, and they must be willing to pay a premium, Mr Nickerson said.
Space Property principal and auctioneer Nick Penklis said his vendors in Paddington and other inner west suburbs hadn’t displayed the same behaviour.
“We’re seeing a lot of post-auction activity,” he said. “We’re experiencing a lot of buyer activity; whether it’s prior, on the day or a bit after, it’s all about the result.”
Mr Penklis said he was still seeing offers before auction, he just wasn’t seeing them taken up.
“We’re still getting offers, prior to but we’re taking it to auction, we’re getting the best prices on the day,” he said. “Entering into a strong market, a good indicator is strong offers before auction.
“Seeing really good post auction activity, that’s a good sign too.”
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