Even as borrowing costs rise, the largest market correction in 40 years is playing out selectively, and its effects are not felt across the board.
The housing market correction has taken a breather, with preliminary auction clearance rates lifting off their two-year low as rising interest rates tested buyers’ limits and new listings of better-quality homes slowed.
In Sydney, the initial rate of 57.5 per cent – based on 487 results reported so far of the city’s 610 scheduled auctions – was five percentage points up on the previous week’s 52.5 per cent, a figureMelbourne returned a preliminary clearance rate of 59.4 per cent, also up from the previous week’s 56.8 per cent even as – like in Sydney – the number of scheduled auctions fell.
“The second part would be what will be skewing the numbers. There is a lot of one- and two-bedroom apartments coming on the market.” The family buyer won out for the do-it-upper at 192 Crown Street with plans approved for a conversion of the three-level dwelling into a three-bedroom home with two bathrooms and a front balcony.The reserve price was not disclosed but the final selling price was 30.8 per cent above the highest offer prior, Ray White Touma Group sales agent Charles Touma said.
But the market is forcing vendors to make concessions. In Melbourne’s leafy eastern suburb of Balwyn North, a mock-French Provincial style mansion on 1012 square metres sold for $4.3 million, less than the $4.55 million it changed hands for in August 2017.Agent Brian Chen of VicProp Manningham said the five-bedroom, four-bathroom, 33 Jacka Street home would have probably fetched a higher price if it were sold five months earlier.
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