If you’ve been watching the auction market closely this summer, you’ll know it’s been a busy few months.

More lots have been coming to market, more money is being raised, but at the same time, buyers are being a little choosier with what they are buying. The numbers for August (reported in September’s EIG newsletter) paint a picture of growth but there is a sprinkle of caution needed.

So, what’s really going on in the auction ‘rooms’, and what does it mean for investors and traders right now? Let’s break it down.

Supply is up – but not all stock is equal
August saw a big jump in auction supply: 1,738 lots offered, up 22.7% compared with the same time last year. Sales were up too, with 1,113 lots sold (a 15.3% increase). On the surface, that’s a positive story – more properties entering the market and more deals getting done.

But look a little deeper, and the percentage sold rate tells us something else: just 64% of lots sold, down from 68.1% a year ago. That’s the market saying: “We’ll buy, but only if the deal stacks.”

For investors, this means the days of anything and everything selling under the hammer are over. Quality matters more than ever.

This decline in success rates isn’t happening in isolation. If we track back over the past 18 months, we’ve seen a gradual erosion from the heady days of 2022 when success rates regularly topped 72-75%. The current 64% represents a new baseline—one that reflects a more mature, cautious marketplace.