Falling Auction rates across Australia

The decline of auction rates and confidence in the market

 

The number of homes being put up for auction across Australia has plummeted as falling property prices and fewer cashed-up buyers shake the confidence of owners looking for the right time to sell.

CoreLogic - properties taken to auction last weekend was 1,909 - down from the previous year - 2,270. The number of homes being taken to market is down on average by 20 percent. Sydney, the preliminary clearance rate was 59.1 percent, indicating a classic "buyer's market". Property values plummeted by 5.6 percent to record over the past 12 months to a median house price of $863,769. Melbourne, the preliminary clearance rate was just 58.6 percent. House values have fallen 1.6 percent over the last 12 months to record a median house price of $709,568

 

The Analysis

Coming down from the top - Last year was at the peak of the market

Long term normal averages Why is this happening? Consumer confidence Prices are too high

 

Property Clock Link: https://www.htw.com.au/month-in-review/

 

Things move in Cycles

Residential property market goes in cycles

Supply and demand Supply – Properties being built Demand – Interest rates, credit availability, population increases Demand may be dropping as auction set prices are too high People may just not want to pay what people are asking for in the price Especially Sydney and Melbourne

 

Don’t panic

Be aware, but don’t be alarmed News stories are crafted just to sell A few weeks is not a trend – Takes some time and may have just been a rainy day

 

Won’t see a massive drop

Investment properties will go first Expensive to own property