Twice the value, half the doubt: Auction market regains its mojo in Sydney and Melbourne

The number of capital city auctions jumped by more than 60 per cent this week, with 2,216 homes going under the hammer.

With a reduced number of auctions the week prior, due to a long weekend in most states, auction volumes increased by 61 per cent, with the clearance rate also returning to above 70 per cent.

"The preliminary auction clearance rate bounced back this week, coming in at 70.1 per cent following a plunge to 59.9 per cent (revised up to 60.7 per cent) over the week prior, which was impacted by the King's Birthday long weekend," said Cotality research director, Tim Lawless.

Sydney hosted 836 auctions, including the sale of a brick character home at 127 Roseville Avenue, Roseville.

The three-bedroom classic, period home attracted seven registered bidders and a crowd of 100 people.

Ray White Upper North Shore agent Jessica Cao said bidding opened at $2.7 million.

"It was a great day, there was lots of interest," Ms Cao said.

"There was a huge crowd, all the neighbours came to watch," she said.

Just four of the registered bidders raised their hand during the auction with the final bid of $3.13 million made by a young couple with two young boys, who were keen to secure a large family home within the local school catchment area.

The vendor bought the home in 2011 for less than half the price - $1.26 million - and had held it as an investment property.

Mr Lawless said Sydney's preliminary clearance rate rose to 70.5 per cent, the first time it came in above 70 per cent in three weeks.

"It's only the second time in thirteen weeks that Sydney has recorded a preliminary auction clearance rate at 70 per cent or higher," he said.

Renovated beauty attracts 10 registered bidders

In Melbourne's north, a beautifully renovated Victorian terrace has sold at auction for $1.36 million, with four out of 10 registered bidders vying for the keys to the sleek two-bedroom home, with a separate studio/home office.

Listing agent Damian Ponte from Nelson Alexander Coburg said the home at 23 Linda Street, Coburg was popular among professional couples and young families.

"We had over 80 groups through during the campaign and it's an outstanding result for a single-fronted terrace," he said.

Mr Ponte said the vendors had undertaken a "stunning renovation" of the home some years ago.

"It was time for them to move on and a young local family has bought it," he said.

Mr Ponte said the depth of buyers at Saturday's auction reflected an uplift in buyer confidence.

"The market has dialled up a bit more. Buyer confidence is back, and they seem to be making decisions a bit more quickly," he said.

Mr Ponte said the likelihood of further interest rate cuts was helping to boost confidence.

"The fact that we're heading into winter and volumes are quite low is also working to sellers' advantage at the moment too," he added.

Melbourne still recorded the most auctions of all the capital cities, with 1,030 homes going underthe hammer.

The early clearance rate showed 72.2 percent have been successful so far, up from 71.5 per cent the week prior, which revised down to 65.9 per cent once finalised.

"It's the seventh week in a row where the preliminary clearance rate has held above the 70 per cent mark," Cotality's Tim Lawless said.

At the same time last year, the clearance rate was 63.7 per cent.

Strong competition in Geelong and beyond

Meanwhile, in Geelong, three active bidders took part in a competitive auction for a three-bedroom, two-bathroom home on a large block at 10 Sycamore Street in Hamlyn Heights.

The spacious home in a family-friendly neighbourhood eventually sold for $886,000.

The vendors, who have three children and built the home in 2012, plan to move to a larger home in the local area.

Ray White Victoria chief auctioneer Jeremy Tyrrell said the number of auctions across the state remained strong, along with buyer interest, even as the traditionally quiet winter selling season sets in.

"This was mirrored across the majority of auctions this week... amid strong competition from buyers with 3.1 active bidders on average across all our auctions," he said.

"With the potential for further interest rate cuts, the market is extremely well placed for a strong second half to 2025."

Mr Lawless said the number of national capital city auctions is set to reduce next week, with approximately 1,850 currently scheduled and rising to around 1,960 the week after.