GOSNELLS was Perth’s top suburb for auctions in the March quarter 2018.
There were 16 auctions in the area according to CoreLogic’s quarterly auction market review.
Across Perth there were 374 auctions, down from 565 in the December quarter and 404 at same time last year.
Realmark managing director John Percudani said auctions followed seasonal trends and with the recent market uncertainty and low confidence it was not surprising to see a drop in uptake.
“As the market sentiment continues to increase and buyers become more confident we will begin to see an uptake again in the auction method,” he said.
Perth’s clearance rate also fell over the reporting period, dropping from 39.7 per cent in the December quarter to 34.7 per cent.
Mr Percudani said if a property did not sell at the auction it did not mean the process did not work.
“There can be some illusions that because a property does not sell under the hammer it is unsuccessful, but it is quite the opposite,” he said.
“If a property does not sell under the hammer 9 times out of 10 it will sell within days post auction.”
Ray White McGinty & Associates listed 15 of the 16 auctions in Gosnells and while most of these properties were passed in, Ray White chief executive Mark Whiteman said owners in Gosnells and surrounds looking to sell their property saw auctions as a circuit breaker in getting things moving, whilst protecting them from underselling.
“The great beauty of auction is that even if the seller doesn’t accept the highest bid on the day and the property passes in the seller can now see where the market is at, and this has all happened inside 30 days, not three months which still translates to a faster more efficient sale than by private treaty,” he said.
“Sellers have been keen to talk to us about the auction method as opposed to just sitting on the market and not being sure what the market will offer.”