Homes listed for auction down 50% on last year

Posted: 16 January 2017 2:57 pm

auction ratesWith more change expected on the horizon for interest rates, owners are keeping their homes off the market.

Some lenders have already changed their interest rates this year, with more are expected to follow. The RBA is also predicted to start making movements on the cash rate when it meets next month.

All this projected change is making owners trepidatious when considering their options and has seen a drop in auction rates compared to this time last year, the AFR reports. Domain economist Andrew Wilson said the little data available showed drops in listings for all three eastern states.

With most of these listings for areas outside the metropolitan areas, Wilson predicted that “a clearer trend will be revealed as auction numbers rise over coming weekends with the first significant metro market test due on Saturday 4 February.”

This shift in the number of listings may have a knock-on effect to clearance rates, helping to drive them up. However, figures from for the weekend just passed don’t fully reflect this, with 45 auctions listed in NSW and 29 of those selling.

According to the AFR, this trend has been happening since the end of last year with some real estate groups reporting a dip in listing volumes. McGrath’s Sydney Smollen office had a reduction of 25-30% in real estate listings.

Other groups, however, have reported a record finish to the year, with Belle Property Australasia chief executive Peter Hanscomb telling the AFR they have started the financial year off strong.

“We have experienced a 14% increase in business across the entire network,” he said.

Images: Shutterstock

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