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Falling Auction rates across Australia
Manage episode 216071023 series 2148531
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
543 episodes
Manage episode 216071023 series 2148531
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
543 episodes
Kaikki jaksot
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