The latest auction results shows the winter chill has set into the Australian property markets.
But it’s more than the cold weather that has slowed down buyer demand. Rising prices, higher interest rates and a slide in confidence with all the mixed messages in the media has meant that some buyers are holding back their purchases.
The Real Estate Institute of Victoria reported there were only 539 auctions over the last weekend. Melbourne recorded a clearance rate of only 67% this week, with 355 properties sold and 174 passed in. Sure this is not at boom time levels, but many have forgotten that a clearance rate of around 70% is normal for Melbourne.
In Sydney, 149 of the 216 properties put to auction sold, giving a clearance rate of 64%.
In Adelaide, 25 properties were put to auction with a clearance rate of 69%.Brisbane saw just 16 auctions, with 6 selling, giving a clearance rate of 35%.
I see our housing markets softening in coming months. By this I mean price growth will slow – it doesn’t mean prices will fall, but they may in some areas; particularly at the bottom-end of the market if interest rates rise again too soon.
If you are in the market for a home or an investment this means it’s a good time to take advantage of keen sellers. The market has moved from a seller’s market to a buyer’s market, but you can only take advantage of it if you buy!
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