Auction volumes have dipped, but the market remains energised.
After several weeks of rising activity, the property auction market recorded a notable drop in volumes for the week ending 7 March 2021. A total of 1,610 auctions were scheduled across the combined capital cities, down 35% from the 2,473 auctions held the previous week, according to CoreLogic’s Auction Market Preview. While a pre-Easter pullback is normal, the ongoing surge in property prices means 2021 may not follow the usual seasonal script.
City breakdown
The weekly drop was uneven across the capitals. Melbourne recorded the sharpest fall, with auction numbers falling from 1,299 to 483, a decline of around 63%. Sydney held up comparatively well, easing slightly from 844 to 833 auctions, a drop of just 1.3%.
This divergence between the two largest cities reflects differing market conditions and seasonal patterns. Melbourne tends to compress its auction schedule more noticeably around the Easter period, while Sydney activity tends to stay steadier through autumn. Before you attend any auction, make sure you’ve sorted your finance. Use our borrowing power calculator to understand your upper limit before you start bidding.
Why the dip matters
Auction markets typically peak in the weeks before Easter as vendors aim to settle before the school holiday break. The dip in volume for this week is consistent with that pattern. However, the broader 2021 market context is anything but typical.
Property prices had been rising sharply in the months prior, driven by low interest rates, strong demand, and limited housing supply. A drop in auction numbers doesn’t necessarily mean a cooling of competition. Fewer properties for sale can actually intensify buyer competition and push prices higher. Buyers looking at the broader context of Australian property market trends will want to stay informed as conditions evolve.
Buying at auction
Auctions are unconditional. If your bid is successful, you are legally committed to purchase. There is no cooling-off period. This makes finance preparation absolutely essential before you set foot on an auction floor.
Here is what you need to have in place:
Don’t forget to calculate your stamp duty costs as part of your total budget. Stamp duty is a significant upfront cost that many first-time buyers underestimate.
Working with a broker
A mortgage broker is a valuable ally when buying at auction. They can secure your pre-approval, identify the right lender for your situation, and help you move quickly when you find the right property.
In a competitive auction environment, speed and certainty of finance are often the difference between winning and missing out. Speak to a Serres Property Finance broker before you start attending auctions so your finance is sorted when the right property comes up.
Common questions
Q: Do I need pre-approval before bidding at an auction?
Yes, pre-approval is essential. Auction purchases are unconditional, meaning there is no cooling-off period. If your bid is successful, you are immediately committed to buy. Without confirmed finance, you risk being unable to settle, which can lead to losing your deposit.
Q: Why do auction volumes typically drop before Easter?
Most vendors and buyers prefer to complete transactions before the school holiday break. This concentrates activity in the weeks leading up to Easter, then volume tends to ease as the holiday approaches. The market usually picks up again once the break is over.
Q: Is a lower auction volume good for buyers?
Not necessarily. Fewer properties going to auction can increase competition for those that do, which can push prices higher. The best strategy is to be well prepared financially regardless of market volume.