Auction Clearance Rates 14th August
There were 751 auctions in Melbourne, with 547 selling and 204 being passed in, 109 of those on a vendor bid. In addition to the auctions, there were also 288 private sales. The result was a clearance rate of 73%.
Regions in the lower-priced outer suburbs continue to record the highest clearance rates in Melbourne with inner suburbs lower and with larger volumes of listings.
Next weekend there will be another increase in auctions, with over 800 properties set to go under the hammer.
Source: Elite Property advisory group
We are seeing the first indicators of a shift in the market. The 73% clearance rate is the lowest for 2017. There are two factors at play, one from buyers and one from sellers.
Buyers, especially investors have been hit with tighter lending policies restricting their access to finance and rates are higher for those who can access finance.
Noticing the credit pinch, real estate agents are inciting sellers to put their properties on the market before it gets any tighter. Couple more supply and limited demand with new under-quoting laws and lower clearance rates are a natural outcome which in turn creates the environment for tapering prices and ultimately rising yields, the first sign of the marketing shifting to favour buyers.
So, if you have been waiting for improve conditions before commencing your search for a property, give us a call and we will check your borrowing capacity so you have an ideal purchase price target to set your budget.
Note: We have access to lenders on our 35 strong panel with a continuing appetite for investment lending.