Property Market Springs a Surprise as Clearance Rates Edge Higher
Clearance rates edge higher, a welcome spring surprise has provided property vendors with some pre-Christmas cheer as auction clearance rates edge higher. Good weather and great value have encouraged active buyers into the market. October’s last weekend of property auctions provided good news, with capital city auction clearance rates lifting, and many other parts of Australia, such as Brisbane and Hobart, seeing strong results.
One of the key numbers for analysts evaluating the property markets’ activity is the auction clearance rate – how many properties sold at auction compared with properties that remained unsold. It is one of a basket of indices that can give a foretaste of market sentiments. The recent good results coming into November has confounded those who have been predicting dire results for the property sector.
Good News as Capital Clearance Rates Higher
According to CoreLogic, real estate industry number crunchers, vendors had reason to be in good cheer after the final weekend of October, 2018 saw capital city auctions clear 50.2% of available properties. 160 properties across the capitals were withdrawn from sale; with some properties moving from an auction method of selling to private treaty sale, and others choosing to reconfigure their selling strategies.
This figure is up from the previous week’s results, demonstrating the property market still has life in it. The news augers well for 2019 as the industry enters its traditional Christmas wind-down period.
Capital city property markets have been facing very challenging conditions during 2018 with credit conditions becoming tighter as Australian banks’ funding costs have forced them to hike home loan rates even as official interest rates, set by the Reserve Bank (RBA), have remained at historic lows. Foreign and investor buyers have also been less active due to changes in the regulatory environment.
Property finance industry insiders note good rates are still available to selected borrowers meeting the criteria, with First Home Buyers and down-sizers especially active in the market at the moment as a result. Good results are achievable for property investors too; however, it is recommended to seek good advice from knowledgeable property advisors and mortgage brokers.
Do you want to take advantage of today’s low interest rates to buy your next home or investment property? Give Vision Property & Finance a call on 02 8354 3000 to reach Sydney’s office or 02 4014 1999 to talk to someone in Newcastle’s office. You can also contact us here.