8th August 2011
The news out of America did not have any impact on results over the weekend, with the clearance rate remaining consistent with the last few months of activity. This week’s clearance rate was 57% as reported by the REIV. There were 460 properties scheduled for auction on the weekend, and 260 of those found new owners. Of the 200 properties that passed in, 139 of those (or 69%) failed to attract real bidders and were passed in on a vendors bid. At the same time last year, the clearance rate was a balanced 67%. If anything, the financial crisis may in fact give the property market a boost with investors preferring to put their money into the ‘safer’ option – property. There are nearly 500 auctions scheduled for next weekend.
The NPB clearance rate for the week was 69%, with 25 of the 36 properties we reviewed selling. The NPB clearance rate last week was 64%. The lower end of the market (under $600k) outperformed both the middle range and higher end of the market on the weekend with a clearance rate of 81%, up 9% on last week. A total of 9 properties sold from the 11 we reviewed in this category. The middle range category ($600k-1m) had a clearance rate of 62%, with 9 of the 13 properties we reviewed selling. Although considerably higher than last week, the high end ($1m+) again came in as being the worst performer with a clearance rate of 58%, with 7 of the 12 properties we reviewed being purchased.
Auctions in the Spotlight
The full list of the 36 properties we reviewed this weekend:
With the Reserve Bank of Australia leaving interest rates on hold for another month, we expect the market to perform in a similar fashion over the next couple of weeks before the traditional spring season sees more activity from September, both from a buyer and seller point of view. If you are thinking about buying, don’t leave it until the market picks up as you may well be paying a lot more than you need to.
If you need any help with searching, assessing or negotiating your next property purchase or simply wish to discuss your property buying needs, please don’t hesitate to contact me.
National Property Buyers
0418 131 950