Auction Action: Attack of the babies!

A big baby Saturday in Sydney yesterday.

If Sydney first home owners were disgruntled about a  phalanx of grey beard speculators out bidding them at auctions, they are now petrified by a new foe advancing through the post codes of Sydney – an army of babies hell bent on speculation and becoming the ‘bub with the most buy-to-let toys’ at day care.images

The Prime Minister unleashed this horde on Sunday last week with the implied announcement that under his government, if re-elected, no baby would reach the age of 5 without at least 1 investment property and possibly one for their future off-spring (no time for childhood when speculation starts young).

As a result pamper clad speculating rug rats have been spotted in all the best suburbs clutching their Fisher Price magic slates calculating rates of depreciation and the risk of being hit with Mr Baird’s new “value capture” concept.

Cute cuddly cheeks were too much for even the most dry eyed mortgage broker, lending officer or most importantly their overlords at APRA, and finance was flowing thick and fast to the property hungry infant landlord class.  Yesterday imported European prams were spotted jamming the kerbs for blocks around even the most dilapidated renovator delights.

If APRA and the RBA are concerned about a property market with a bad case of wind they are certainly not doing enough to burp it.   There could be tears before bed time if they continue to be such irresponsible property market wet nurses.

But then who among us is willing to stand up to a toddler determined to negatively gear the pocket money they are not yet earning.

The Sydney Morning Herald and Australian Property Monitors report indicates that agents reported 78% of the 672 auctions listed for Saturday – which is about average.

  • A healthy number of auctions  (APM counted 672 and Core Logic 788)
  • Clearance rates of 74% or 75% of reported auctions and 58% or 53% of scheduled.
  • A median of $1,150,000
  • A mean over $1,000,000
  • Hammer Time cracking 34% – beating the first 13 week auction action average of 29%
  • Total values of sales over $400M
  • Agents commissions on the sales estimated at over $8M

160430 - Snapshot

Note:   In order to encourage agents to help APM collate the most complete stats each Saturday night, the Glass Pyramid is presenting all results as a percentage of the number of Auctions Listed.  The reason for this is that agents are more likely to report ‘good results’ sooner and that can tilt the figures when results are presented as a % of what agents have bothered to report on Saturday afternoon.

Anyhow – onto the good stuff!

There are THREE tables this week.  The first contains yesterday’s APM’s  results pdf sliced and diced.  The second contains a summary of recent weeks and the third contains the data and averages for the first 13 weeks of Auction Action fun. 

Each week publishes auctions results (click here) compiled by the good folk at Core Logic RP .  The difference between these results and the SMH/APM results arises because they include all auctions during the week, whereas the SMH/APM results are for auctions listed just on the Saturday.  This means that the number of scheduled auctions is usually higher.

Click on the link to read all the details in their natural habitat but the key “Auction Action” metrics are:

  • No of Sched Auctions:      788 versus 672 on SMH/APM
  • % of results rep:                 77% (604 of 788) (80% last week)
  • Number cleared:                 455
  • Clearance as % of rep:      75%   (78% last week)
  • Clearance as % of sched:  58%   (63% last week)
  • Pre-Action Panic:               18% (138) of the sched auctions (18% last week)
  • Hammer Time:                    44% (350) of the sched auctions (48% last week)
  • Seller Sadness:                     15% (116) of the sched auctions (13% last week)
  • The metrics are reasonably consistent with the SMP/APM results having regard to the differences in reporting rates.
  • The reporting rates for the Core Logic rates varies a lot each week and that affects the figures when expressed as a % of the scheduled number of auctions.

Table 1 – Saturday 30 April 2016


Table 2 – Summary of recent results.

160430 - Summary

Table – Summary of the first 13 weeks of Auction Action

160423 - 1st Quarter Summary

Categories: Macrobusiness

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