Auction rates hit year low
In Sydney and Melbourne, auctions hit a 52-week low of 49.8 per cent and 55.6 per cent respectively, according to Australian Property Monitors. On the corresponding weekend last year, Sydney auctions cleared 70.5 per cent of homes and Melbourne’s clearance rate was a healthy 78 per cent.
Rates were down too from last year’s figures in Brisbane, with just eight homes sold under the hammer, clearing 47.1 per cent of reported auctions, compared with 51.9 per cent last year.
Eight homes were successfully auctioned in Adelaide, which had a clearance rate of 47.6 per cent, down from 57.9 per cent on the same weekend last year.
National property consultant Damian Kininmonth, from Preston Rowe Paterson, attributed the steady decline in clearance rates across the country’s major markets to buyers being more selective and taking their time to make a purchase.
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“Obviously there were large volumes being transacted earlier in the year and people were really keen to get into the market,” Mr Kininmonth said.
“But with the rising of interest rates, people are becoming more selective with their properties, so we are actually starting to see the gap widen between good properties and what are just also-ran properties.
“The good properties are still doing very well, but the also-rans are not as sought after because people are happy to wait for another property to come along the next week.”
Mr Kininmonth said real estate agents were waiting for the spring months when the market was usually at its best.
Agents were hopeful the federal election would be held before spring as the lead-up to a poll usually flattened housing sales.