Although the housing market situation in Australia is stable and firm, especially in Melbourne and Sydney, auctioning homes retains the popular way of selling residential properties. According to a recent report by fairtrading.nsw.gov.au, "Auctions have become an increasingly popular way to sell or buy residential property and getting to know the process is crucial." To sell through an auction process, the quantity you want for the property is usually not exposed to the would-be buyers. The potential buyers are then encouraged to join the sale and bid for the property alongside the other would-be buyers.
Over the past financial year some 25.6 percent of all properties advertised for sale were taken to auction across Australia's capital cities, with Melbourne, Sydney and Canberra shows more than one third of all listings being taken to auction as stated in a report by propertywire.com. There were roughly 380,000 dwellings publicized for sale through Australia's capital cities, of which approximately 84,000 or 26 percent were advertised as auction sales.
The increase in the ratio of residential properties taken to sale is not a surprise, in view of how hot housing market circumstances are in the auction cities of Melbourne and Sydney. When market demand is high and buyers are highly competitive, the auction process is likely to provide the best possible price for a property transaction as stated in a previous report by propertywire.com. The differing condition is true when housing market conditions are feeble, auctions aren't as prevalent. Due to fact that there is a reduced amount of determination amongst buyers. The competitive bidding milieu isn't likely to be as favorable to finding the best possible worth of a home. The data provided by propertywire.com show that across the capital cities, Melbourne is still the city where auctions are the most popular method of selling a home. An estimate of 39 percent of all Melbourne's residential property listings for the past year was taken to auction, followed by Sydney and Canberra not far behind at 38 percent and 36 percent respectively.