Auction clearance rates were down this weekend despite talk of consumer confidence returning.
Auction figures released by Australian Property Monitors found clearance rates in Brisbane were down by 35.5 per cent over the weekend, with Brisbane recording the lowest clearance rate of only 12.5 per cent.
The story was much the same in Melbourne, with auction clearance rates declining by yet another 10.3 per cent to 47.4 per cent.
The Real Estate Intitute of Victoria (REIV) reported a 53 per cent clearance rate in Melbourne on the weekend.
Enzo Raimondo, REIV’s CEO, said the auction market “has been typified by consistently moderate levels of demand this year and this weekend [was] no different.”
Almost half of all auctions held were passed in with majority of these being passed in on a vendor bid.
“Next weekend the REIV expects around 1045 auctions next weekend.”
Despite the sharp falls in both Brisbane and Melbourne, clearance rates in Sydney and Adelaide remained relatively stable with 52.4 per cent and 34.5 per cent of properties selling, respectively, over the weekend.
A three bedroom house located in Annandale, in Sydney’s inner west, took the title as most expensive property sold over the weekend, selling for in excess of $2.4 million. The most affordable home was three bedroom villa in St Marys, in Sydney’s outer west, which sold for $241,000.
The Real Estate Institute of NSW (REINSW) reported a Sydney clearance rate of 58 per cent for the weekend, with 372 properties selling and 268 passing in (33 of those on a vendor bid).
Across the board buyers appear to be holding back hoping to see further property price drops. It does not appear that the recent interest rate cut by the RBA has made any difference to buyer demand. Despite home loans being significantly cheaper now than even 3 months ago, demand for property is just not there.