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As the market weakens, auction remains the best form of sale

By Rachel Wallace

Since the start of the year, properties are staying on the market longer. Days on market have increased. Overall, the increase has been minor, increasing from 22 days to 24 days however some cities are seeing bigger increases. Sydney has seen the biggest increase,  from 19 days to 24 days.

Properties that stay on market longer are typically discounted more. As days on market has increased, so too has discounting. At the end of 2021, discounting hit the lowest level ever recorded at just -2.9 per cent but has most recently declined to -3.2 per cent.

Given that increasing days on market and discounting go hand in hand, right now it is more important than ever that when you go to market, you want to sell quickly. Our latest analysis of Ray White auction results has shown that right now, if you want to sell in a slowing market, auction is the best way to go to market.

Even with declining clearance rates, the proportion of properties selling by auction has increased, as opposed to private treaty or other forms of sale which have fallen. In 2021, an average of 28 per cent of Ray White properties sold via auction. So far this year, this has increased to 33 per cent. In contrast, the proportion selling by private treaty has fallen from 62 per cent of total sales to 59 per cent. Selling by other means has also declined from 10 per cent to seven per cent.

As general advice, if you sell in a slow market and want the best price, you want to avoid your property staying on the market for a long time and becoming discounted. To do this, auction is your best form of sale.

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