Based on Reported Auction Results*

Auction Success Rates Drift Lower

From levels of success seen at auction in the autumn quarter ranging from mid to high 60’s per cent, the winter quarter has seen numbers drift lower, ranging from in the low 60’s occasionally down into the high 50’s. This is not attributable to the season as some might think. It is economic climate related. As a general rule, weather seasons will affect the volumes of properties on the market, but not how well they sell.

Aware of a degree of uncertainty on fronts both political and economic, together with banks toughening their lending regimes, buyers are now fewer in number and less inclined to haste. After a trend of many years of good times, this can hardly come as a surprise. On top of this, prices are high and many folk are simply priced out of the market nowadays. In broad terms 2018 has likely seen a correction of up to 10% in most areas on residential property values.

The market can still be described as “reasonable”. A property that is appropriately valued and priced to sell – which requires vendors to be realistic, will find a buyer. Now however, the process will take longer. Auctions will produce fewer strong buyers resulting in more pass-ins and post-auction sales.

It is our expectation that current market conditions will continue to at best to be “reasonable” from a sellers perspective; but with the possibility of things gradually become slower. Whilst this market environment will help buyers and take some urgency out of their house hunting, it is worth remembering the house buying process is about finding something you like, then buying it as well as you can. It is not only about price. Some buyers may lose sight of this and become too focused on buying a “bargain”. Our recommendation is to remain focused on the house first, then the price. Call us if you feel we can help you.