There is no denying the real estate market is heading into uncertain times but Newcastle agents say they are quickly adapting to change.
The Federal Government banned open houses and public auctions on March 24.
While some agents and vendors have changed auction campaigns to private treaty or expressions of interest, others have moved fast to explore online auction platforms.
Raine & Horne's Patrick Collins was full of praise for AuctionNow, which his agency used for the first time two days after the government's latest social distancing measures were put into place amid the coronavirus crisis.
He had a three-bedroom house on a corner block at 173 Corlette Street in The Junction set for a public auction on March 26.
"Tuesday we were still holding the auction then Tuesday night they were called off, so Wednesday we were looking for a platform then getting it set up and doing all of the ins and outs at the back end to get it going," Mr Collins said. "There were a few issues here and there but once we ironed them out and got it working it worked really, really well. Buyers were able to register online. We still held the auctions in rooms as it was happening with the auctioneer there.
"It was either going to work really well or it was going to crash down around us but it worked really well. Everything went really, really smoothly and it's definitely something that I'll be using in the future, even when we are allowed to host auctions on site again.
"It gives another avenue for people to register and bid if they're in another city or country or can't make the auction because of work. It just opens up the property to more buyers, I feel."
There were four registered bidders for the property, which was on the market for the first time in over 120 years. It was marketed with a guide of $1.2 million and sold sold under the hammer for $1.2105 million.
His Raine & Horne colleague Jane Shaw also had multiple online bidders for a four-bedroom weatherboard home at 23 Lugar Street in Kotara South which sold under the hammer for $515,000 on the auction night. Mr Collins reported around "40 or 50 people" watched both online auctions "out of interest".
Developed by Cooley Auctions, AuctionNow is described as "a game changer for the property industry".
It offers a complete auction management system - from listing to auction day and through to exchange.
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Its core functionalities allow buyers to watch, register, bid, buy and exchange all from the comfort of their own homes.
Newcastle auctioneer Craig Rosevear, of Cooley Auctions, told the Newcastle Herald they have been using online auction technology for the past couple of years.
"Because we've been doing it for so long, it [the changes to auctions] doesn't even feel like anything dramatically new," Mr Rosevear told the Herald. "It just feels like part of what we've always offered. It gives flexibility and provides options for agents and their clients. Some people just don't want to leave the house and this just gives them that ability."
He described the take-up of AuctionNow by agents and other auctioneers in the past couple of weeks as "phenomenal".
"The technology has been there for years but now people are scouting around for it and discovering it and I think, on the other side of all of this, the virtual way of doing business is going to stick once people realise it's pretty useful and offers more flexibility," Mr Rosevear said.
On Saturday, First National Newcastle City will take a four-bedroom Victorian residence that is the amalgamation of two Lance Villa homes designed by Frederick Menkens at 66 Church Street on The Hill to auction through AuctionNow with a guide of $2.1 million to $2.3 million. Agent Tom Lemke reported their had been "good interest" for the property ahead of its 10.30am auction.
PRD Newcastle and Lake Macquarie have been long-time users of AuctionNow and will use the online platform for 15 properties they have scheduled for auction next Wednesday night.
Agents have reported plenty of sales activity outside of auctions still. PRD agent Chasse Ede said "a beautifully renovated" three-bedroom Hamilton East home at 26 Dumaresq Street went live to market on March 19 and had a buyer committed to it three days later. The sale price was not disclosed but the Herald understands it was between $1.4 million to $1.5 million.
Mr Ede said the buyer had a pre-approval in place they wanted to act on while interest rates were low.
"They have been in the market and on our database for six months, and actively looking," he said.
Anthony Merlo, of Dalton Partners The Junction, reported of four "quality family homes" he had released to market in an eight-day period, in Adamstown, Adamstown Heights, Kotara and New Lambton, all had received good interest with sales advice issued on three and the remaining property being under negotiation.
A renovated three-bedroom, two-bathroom house at 22 Longworth Avenue in New Lambton was secured for $950,000 by out-of-town buyers relocating back to Newcastle within four days of it hitting the market.
Robinson Property's Mike Flook said a young owner-occupier had bought a two-bedroom unit at 1/26 Janet Street in Merewether for $500,000. It had a guide of $490,000 to $510,000.
First National Newcastle City sold a five-bedroom home at 38 Ridgeway Road in New Lambton Heights for $1.075 million prior to its scheduled auction. It was marketed with a guide of $1 million to $1.1 million and sold after two weeks on the market.
They also sold a two-bedroom house at 19 Steel Street Hamilton with an R3 Medium Density Residential zoning for $520,000 within two weeks. The house behind it at 6 Bridge Street is currently for sale with a guide of $600,000 to $650,000.
Dalton Partners New Lambton's John Kerr reported the $510,000 sale of 40 George Street in Mayfield to an investor after 10 days on the market. It was a home that had been divided into two self-contained flats with long-term tenants wanting to stay.
He also sold a 712 square metre block of land with a 20m frontage at 25 Robinia Close in Elermore Vale for $365,000 that "was snapped up by a Sydney buyer who has plans to build on it in the coming years".
They also had multiple offers for a three-bedroom house at 12 Meredith Street in New Lambton that sold for $637,000 within its first week on the market.
Across the board, agents have reported they are adjusting to change quickly and finding news ways to market properties.
Darren Penn, of Ray White Newcastle and Lake Macquarie, said it was a matter of "adapting to show people homes differently". This includes more extensive videos and photography of properties, FaceTime viewings and going to extreme hygiene measures for "hands off" private viewings for genuine buyers.
