Housing Wipe-Out: No Bids or Even Bidders at Numerous Australia Housing Auctions

The numbers of potential bidders in recent housing auction in Australia dropped to less than one. Most did not bid.

It's a Housing Wipe-Out in Australia.

  • Bidders per auction: 0.7 – a very negative stat for the start of the Spring market.
  • 10 auctions in Bayside: 3 bidders in total.
  • 13 auctions in Stonnington and if you take out the 2 volcanoes (4 or more bidders) there were 5 bidders at the other 11 auctions.
  • In Boroondara there were 12 auctions and 9 of them had no bidders at all.

No Bidders

Financial Review reports Auction clearance rate: House buyers know they have the upper hand.

>The dramatic change in the Sydney property market was obvious at two auctions on Saturday that achieved an outcome unheard of just months ago: no bidders turned up.

>At the sale of a brand-new four-bedroom penthouse Lidcombe, in Sydney's almost-inner west, The Australian Financial Review was the only attendee.

>"Are you here to bid?" the agents asked. Upon hearing I was a journalist, they told me they had interested buyers who didn't turn up.

>There were also no bidders at a three-bedroom unrenovated home in Guildford while a two-bedroom unit at Baywater Drive in Wentworth Point was passed it. That unit had been on the market for nearly a year and its asking price has fallen about 12 per cent in that time.

>Public records show the vendor was asking for $730,000 in October, and $675,000 on Saturday. It passed in at $645,000 from one registered bidder.

>In Melbourne, buyer's agent Morrell and Koren's Emma Bloom said agents were moving to a "less transparent" private treaty sale process to "protect values" of homes. "There are now either no bidders, or one bidder," she said.

Turn Out the Lights

Turn out the lights, the party is over.

Mike "Mish" Shedlock

Comments (7)
No. 1-5
BoneIdle
BoneIdle

Latest flyer through my letter box from a local land rat who prides and advertises himself on his ability to auction property.

"Do you realise 93% of property is not sold at auction!! List your property with us today for fast private treaty settlement"

The vested interests are starting to roll out the panicked marketing spiel.

Your previous reports have detailed information coming from Australia's "Core Logic" property reporting system. They only report what has been forwarded to them by vested interests. Any negative results are held back - doctored. Failed auctions are covered up by pending private sales. Private sales / private treaties are taken off the listings or not advertised.

Anecdotal evidence points to a much wider drop off in pricing.

As with everything financial in this Bizarro world. Confidence is only held up by "Goodwill" and or positive news from the vested interests. We don't want foreign investors scared off by bad news.

Australia's economy is hanging on with the real estate bubble. Real estate goes down - watch out below.

2banana
2banana

Orwellian...

"agents were moving to a "less transparent" private treaty sale process to "protect values" of homes."

flubber
flubber

Years ago in an upscale area of Miami, 'For Sale' signs were so abundant, the local community politicians passed a law limiting the size of the 'For Sale' signs to 1/4 of their normal size. I guess it was an attempt to minimize the effects of white flight with so many homes on the market.

pgp
pgp

Now you know why the parliaments down there are fracturing and why the two major parties can't settle on a single leader for more than a couple of years. Belying all the political maneuverings is economic panic caused by the growing realization that the country's financial future is indeed bleak.

Now that exports to China/Asia (of everything from food and ore to dirt and garbage) is on the decline the only thing keeping the debt indentured population employed are the building and financial services industries.

It's no wonder factions form in their governments as disparate cabals of like-minded ministers, thinking they have the solution to financial prosperity, conspire to take control. Proponents of stimulus in the form of public service or defense sector expansion, living wages for everyone, negative interest rates or the oligarchs who believe selling more of the country to the Chinese makes sense.

It's the same story everywhere else in the world. As the global economy crumbles under the weight of phenomenal private and public debt, the government establishments fractures into competing groups ready to consider all kinds of headless-chicken or extremist policies in a desperate attempt to rescue themselves, their supporters and the wealth they control. And behind it all are the central banks, pulling the market strings to maintain some semblance of global economic order.