Market cools as 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, The Australian reported.
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.
Start of sidebar. Skip to end of sidebar.
Related CoverageInvesting: Cash beats shares
End of sidebar. Return to start of sidebar.
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.
Winter bargains
JPP Buyer Advocates’ Catherine Cashmore said the tables had turned for some buyers, with stubborn hopefuls willing to brave the chill competing against fewer bidders and paying more realistic prices.
“There’s more stock on the market making up for a shortage earlier in the year, but a natural lull of buyers because people tend to hunker down in the colder weather,” Ms Cashmore told the Herald Sun.
“Concentrated competition is the biggest factor in pushing up prices.
“Now instead of seeing five, six or seven bidders in a crazy auction there are often just two or three.”
Real Estate Institute of Victoria president Enzo Raimondo said buyers were in the best position to negotiate for 18 months because of the amount of homes on the market and low clearance rates. Some vendors needed to adjust their asking price in line with market trends, he said.
“The residential market is much more balanced, with purchasers less likely to be confronted with homes selling for unexpected prices,” Mr Raimondo said.