Real estate auction liquidation rates and prices could fall in the spring, according to an analyst

Published

July 16, 2018 14:27:45

The Australian real estate market undergoes a serious winter cooling

The preliminary auction clearance rates in Sydney have dropped below 50% last weekend according to the figures of Domain and clung just above according to CoreLogic. stronger, although still stuck in the 50s.

But many agents are slow to report unsuccessful sales, so these liquidation rates tend to drop significantly when the final figures arrive at the end of the week.

between Sydney and Melbourne, we estimate that this will be around 49 percent, "said Louis Christopher, managing director of SQM Research

. Falling prices Sydney has seen over the past year and with the rapid slowdown in the Melbourne market, prices rising from rising to falling.

Pete Wargent's buyer Agent Allen Wargent said that there is a confluence

"A number of different factors have led to: lending standards more strict, an ongoing royal commission and a slower mortgage processing time, "he said. "The number of new listings, especially in Sydney, is at its lowest level in half a decade, so the sellers are obviously not as confident as they have been." But, that said , the total number of listings is also at its multi-year high, which just reflects that properties that have been quoted on the market take much longer. Instinctively, most people think that the real estate markets will be weaker in the winter, but Mr. Christopher said that customs clearance rates are deteriorating in the usual way. in spring.

"It goes b" In the spring, we see other listings arrive in the spring – many sellers think it's a good time to sell, the problem is that all sellers think that it's This is the case

Based on past experience, Mr. Christopher expects the auction liquidation rates to fall in the 1930s for Sydney and the mid-1940s. for Melbourne.

about two or three times I saw the auction liquidation rates in the 30s, "he said.

"It was in 2008, when we were entering the GFC."

"Before that, briefly in 2004 in Sydney when the state did introduce the stamp duty vendor.

"And then, before that, in 1989, when the rate of money has reached 17%

" So, if that happens, it's a very rare opportunity.this will mean that the market is in difficulty. "

M. Christopher said the auction liquidation rates in the 30s would be with annual price cuts of at least 5 percent.

"Clear" East Coast Markets See Quality Properties Selling, Other Unhooking

Even with Auction Liquidation Rates of 60 to 40, The Sydney Market Has Already Falled About 5% from last year 's peak

Although Louis Christopher and Pete Wargent both observed that these falls were not evenly distributed, some properties were not uniformly distributed. by shooting much less well. "Some of the second- and second-best goods have seen their liquidation rates fall dramatically," said Mr. Wargent

adding that sales agents needed to offer their clients realistic pricing advice. doing their job should be able to help a supplier set its expectations accordingly, "he said, noting that unrealistic expectations at the time of the boom are one of the reasons why many properties remain on the market for months

M. Wargent is active in the Brisbane market, where it says that demand is also "uneven", with high quality properties for upgrading plants and those leaving southern states, while other properties have hard to sell. Topics:

the housing industry,

consumer-finance,

Australia,

Sydney 2000

melbourne-3000