For the real estate market the past six months have not been as successful as last year, especially when it comes to the number of auctions held and the volume of successful sales.
A report from Williams Media said the 2018 auction market has indicated the slowing property market as auctions perform as poorly as they had been in 2012.
For the last week of June, even fewer homes went under the hammer – only 1,669 auctions were held with a clearance rate of 56.7%, compared to a week prior when 1,849 dwellings were put into auction.
Over the first six months, average clearance rate stood at 60.5%. This paints a stark difference from during the same period last year when an average of 72.5% of homes were sold.
However, there is no need to worry too much, given the seasonal effects of winter on both buyers and sellers. Ken Jacobs from Christie's International told Williams Media that the lower number of listings is one reason why sales are also down.
"The winter effect has meant that we're seeing slower numbers. This time of year, the low supply is due to sellers who are away on holidays. Those at the higher end of the market are typically on holidays in the northern hemisphere for summer," he said.
Ray White New Farm agent Matt Lancashire shared a similar sentiment about the recent trend, adding that it is not necessarily a reflection of how the market is performing.
"I would say the low clearance rates are simply due to the timing of the year -- school holidays are a major factor. There is actually more confidence in the market right now than we've seen in a very long time," he told Williams Media.
Lancashire, a local agent in Brisbane, said many prospective home buyers are either enjoying the holidays or out of the country.
"That is a pretty good factor of how the market is performing - if people are spending money, if they are confident, if they are going on great holidays," he said.
Last month, national auction rates declined down to a six-year low as two of Australia's biggest housing markets, Melbourne and Sydney, continued to cool.
Over the past week, Melbourne and Sydney’s clearance rates improved slightly, from 59.9% to 60.3% and 50.1% to 56.4%, respectively. However, fewer auctions were held in both cities.
Related stories:
Sydney's auction market showing signs of cooling
Falling home values signal Australia's market downturn
Collections: Mortgage News
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