Auction clearances unseasonally low

In a sign that the real estate market is extremely subdued, auction clearance rates around the country are staying around 60 per cent in Sydney and Melbourne, despite the fact that spring is historically the best time to sell your property.

According to the latest data from Australian Property Monitors, only 56.3 per cent of properties listed for auction in Sydney last weekend actually sold.

The most expensive property sold in the capital city at the weekend was a $3 million five bedroom house in Strathfield, while the most affordable property to go under the hammer was a $290,000, two bedroom unit in Fairfield.

In Melbourne, the auction clearance rate was a little better, with 60.5 per cent of the 825 properties clearing. This is not at all the kind of clearance rate on generally expects in October. Whats more the anticipation of a possible interest rate cut on cup day, together with very cheap fixed rate home loans offers available in the market today does not seem to have done anything to improve the situation.

But despite the solid result, the Real Estate Institute of Victoria’s chief executive Enzo Raimondo said the auction result was still a long way off what was achieved this time last year.

“The clearance rate this weekend last year was 67 per cent. It’s important to note that the number of auctions was also higher last year with 1,127 homes offered for sale,” he said.

“Next weekend 445 auctions are expected, a lower number than this weekend due to the Melbourne Cup being raced on the following Tuesday.”

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