Auction volumes significantly down: RP Data
Auction volumes have being falling away during the past four weeks, according to RP Data.
“We have recorded 4,607 auctions across Australia’s capitals compared with 5,245 auctions over the same period last year,” RP Data research director Tim Lawless says.
“With the housing market in the doldrums and only half of the auctions being held clearing, it is logical to assume that fewer vendors are selling their home via an auction campaign.
“Based on rough calculations, around 24% of homes being sold in June were taken to auction while during the same period one year prior the figure was up around 30%,” Lawless notes.
He says that auction clearance rates across the major capital cities have held fairly steady around the 50% mark since late last year.
During the height of the market back in 2009, as many as 80% of auctions were clearing.
“That was just before the first interest rate rise was announced, and from that time clearance rates trended downwards in line with the market slow down,” he says.
“During the GFC clearance rates fell as low as 42% across the combined capital cities, so the auction results being recorded currently aren’t far off that mark.
“The lowest clearance rate recorded during the year so far has been 43% in late April.
“The key to a successful auction in this depressed market comes back to ensuring an appropriate marketing campaign is in place and the reserve price is set realistically,” he suggests.
The Mark at Sydney's Central Park
Now, all signs point south for this market. A year ago vacancies were near zero but today they’re approaching 5%. Price growth has stopped and, according to Australian Property Monitors’ price graph, has started to dip below the red line.
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