Why have auction clearance rates risen for two months in a row? | elizabethredman
Auction clearance rates have edged higher for two months, but remain in territory that indicates price falls.Property listingsThe auction clearance rate has edged higher for two months in a row as home sellers reduce their price expectations to meet those of cautious buyers.
In Sydney, the clearance rate reached 58.5 per cent last month, up from a July trough of 49.1 per cent. “It’s partly that sellers are looking at the market on price, and are willing to do that to get clearances,” he said.“It’s feeling like a pretty unusual spring selling season. You’ve got some of the vibe in spring selling, and the lift in the clearance rate is part of that, but it feels like the sellers just aren’t there in numbers — it doesn’t feel like a turnaround in the market.”He said there were more interest rate rises to come, taking mortgage repayments into tight territory for buyers.
“The thing that’s changing is we’re seeing the odd good auction where we’ve got good confidence from buyers,” he said.Buyers are cautious because they expect prices to fall further — except at the occasional auction where half a dozen bidders turn up and they realise they must compete to win, he said.
He said interest rate rises were on buyers’ minds, but many were more worried about the outlook for price falls.