Auction Market Soars as Buyers React to Rate Cut

This weekend’s auctions experienced a noticeable boost in confidence, following the first interest rate cut in four years. Buyers were highly active, competing to secure properties while conditions remained favourable.

A total of 524 Ray White properties were scheduled for auction, achieving a preliminary clearance rate of 68.2%. From my observations, it was clear that buyers were eager to participate, with an average of 3.6 registered bidders per auction and 2.5 active bidders.

How the Rate Cut is Shaping the Market

The 25 basis point rate cut has already begun to positively influence the market. While we saw a slowdown in late 2023 due to an increase in available stock, the dynamics shifted by January. With lower rates now in play, prices are strengthening, competition is intensifying, and buyers are moving quickly to secure homes before prices rise further.

From my experience, buyers are fully aware of the opportunity at hand. They’re acting decisively, recognising the importance of buying now before prices increase again. This gives sellers a unique opportunity to take advantage of the current demand.

Auction Results Reflect Strong Seller Confidence

Ray White scheduled 793 auctions this week, marking a 20.3% increase from the same time last year, which signals growing seller confidence in the auction process.

Brisbane led with the highest auction market share at 38%, while Sydney had 232 properties booked. Overall, the national clearance rate stood at 63.5%, with Adelaide showing the strongest result at 69%.

Buyer Demand and Competition

Here’s a closer look at the buyer demographics this week:

✔ 72.49% of sellers were owner-occupiers

✔ 73.06% of buyers were also owner-occupiers

✔ 87.88% of buyers were local, while 8.66% were from interstate

On average, 3.9 registered bidders participated in each auction, with 2.9 active bidders. This level of competition indicates a healthy, buyer-driven market for sellers.

Impressive Sales and Strong Attendance

One of the most significant indicators of market strength is when properties sell for more than anticipated. This week, homes sold for an average of 11.1% more than the highest pre-auction offer and 2.8% over their reserve price.

Auction crowds were also substantial, with 29 attendees per auction on average. Notably, New South Wales saw the highest attendance, with an average of 33 spectators per auction—further proof that auctions are continuing to capture significant interest.

Why Now is the Time to Sell

With clearance rates holding steady, buyer competition intensifying, and overall confidence in the market rising, now is the ideal time to sell.

I’m witnessing buyers act quickly, fully aware that the competition will only increase in the coming months. If you’ve been contemplating a sale, this is your opportunity to achieve a strong result.

Market Highlights

✔ 793 auctions scheduled (+20.3% YoY)

✔ 63.5% national clearance rate

✔ Brisbane leads with 38% of the auction market share

✔ Buyers paid 11.1% more than the highest pre-auction offer

✔ Auctions drew 3.9 registered bidders on average

Let’s have a conversation about how we can position your property to take full advantage of today’s competitive market.