Hi,
The Domain auction clearance rate came in at 64% on 997 reported auctions. 640 sold at auction, 236 passed in and a total of 121 were withdrawn. The clearance rate for the same time last year was 62%.
The property market continues to yield patchy results, with some properties doing extremely well with competition from multiple buyers, and others lucky to attract one bid/offer. The weeks leading up to a federal election often create some uncertainty which results in some buyers (and some vendors) sitting on their hands until after the election. Interestingly, Labor took proposals of changes to negative gearing/property investor tax consessions to the 2016 and 2019 federal elections which impacted property prices and sentiment across the country. This year there are no mention of any reforms that will impact the property market, yet the uncertainty of who will win, is enough for some buyers to just pause temporarily.
The good news though is that has created a small window for buyers to take the opportunity of less competition. There will be another Reserve Bank meeting tomorrow but it is unlikely any further relief in interest rates will come until mid year at a minimum.
We were successful in securing a family home at auction on the weekend and it is a good example of quality homes are in strong demand (and pretty much are in all property market conditions). The property ticked all the boxes, pretty period home, fully renovated, north facing rear, great street close to shops, cafe’s and walking distance to the beach. The auction was not easy though and we did have a fight on our hands to secure it. These rare homes almost always have strong competition to secure them and we were thrilled to have been able to purchase the property for our happy clients.
Have a great week!
Kim Easterbrook – Managing Director
