According to RealEstate.com/au, home auctions accounted for almost 20% of all residential sales in Australia between September 2014 and September 2015. According to Forbes contributor Steve Udelson, Australia owes its real estate auction popularity to rising property prices, which stem from low interest rates, high demand, and limited inventory.
Udelson notes that similar real estate dynamics are in place in the U.S. today – and in that light he points out their advantages. In the traditional purchasing process, opaque sales processes can prevent buyers from having a chance to make higher offers, while all offers are out in the open at auction. Auctions are over within the span of a day or week, which amounts to much less time spent marketing or selling a home. Finally, the home’s buyers have the final decision on the home’s fair market price, based on trends observed during the bidding process.