Auction clearance rates the lowest since mid year

With a massive number of properties listed for pre Xmas auction, both Melbourne and Sydney auction clearance rates have (not surprising) stalled.

The Melbourne property market recorded its lowest clearance rate since July at 67% according to Australian Property Monitors (see below)

And this weekend Sydney recorded its lowest clearance rate for 5 months at 78.2%.

Over the last week at Metropole we were approached by a number of selling agents suggesting we place offers on properties to secure them prior to auction. Clearly they were a little concerned by the level of interest from potential purchasers.

Just out of interest – we managed to secure 3 of these properties at great prices before auction and another 2 at auction – we chose not to make a pre auction offer for these and in retrospect made the correct decision, securing them at fair prices today.

I’m not really concerned at the drop in auction clearance rates. Things tend to slow down seasonally near the end of the year and it is much healthier  and more sustainable if our markets take a short breather rather than continuing with the “boom time” results of the last few weekends.