Plenty hoping for a sale by Christmas.
Over December’s first two weekends more than 2,042 auctions were recorded by the Real Estate Institute of Victoria (REIV). 703 homes were sold at auction and 940 were passed in, 441 of those on a vendor bid. So far in December the clearance rate has averaged 48%, down on November’s 49%.
The correction continues but plenty of homes are coming on the market. And it’s a patchy market, with great homes in great spots performing very well while other homes can struggle. ‘Domain’ claimed the clearance rate for the December 8 and 9 weekend was just 43.9%.
Knowing full well that property market adjustments like this can get a bit rocky, global economic analysts at the OECD (Organisation for Economic Co-operation and Development) in Paris posted a warning to Australia in mid December. The OECD pointed out that if the local housing downturn worsens it could actually cripple consumer spending, which in turn could trigger a downturn in the Australian economy similar to the 2008 Global Financial Crisis. But that’s a gloomy point of view according to Treasurer Scott Frydenberg who described the economy as “good” and that Australian consumers are still “confident” and still spending.
The trend for properties to pass in at auction has continued in December, now firmly a majority. However, one in five passed-in properties sells within two weeks and one in three homes still sells by the 4 week mark.
There are uncertainties in the market for both sellers and buyers. Many property owners want to sell before Christmas/New Year but others are pulling their homes from sale to wait for better selling conditions. In the meantime life goes on and plenty will continue to want to sell, to meet their plans and needs.
As highly experienced advisors we’ve worked through these cycles before and know that as long as you make the right moves – it’s a good time to buy.
Principal Advisor &
Licensed Estate Agent
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