AUCTION CLEARANCE RATES WEEK ENDING DECEMBER 14
The residential property market normally becomes relatively inactive during the festive season, and we are already seeing the number of properties advertised for sale falling away each week. The market won’t spark back into life until late January when the holiday season starts to wind down. Leading into 2009 it is encouraging to note that residential property values appear to have stabilized. The three months ending October ‘08 saw dwelling values nationally increase by 0.3% - in essence a flat market.
Another encouraging sign is that affordability has shown some signs of improvement. Data released by Fujitsu Consulting shows that mortgage stress has eased, falling by 23 percent over the last four months. This is great news for first home buyers where demand has been building for many years. Improving affordability of housing, coupled with the boost in the first home owners grant are a strong incentive for first home buyers to become active. Another motivator must be the fact that weekly rental rates have risen by more than 30% over the last three years, making the gap between rental rates and mortgage payments smaller and smaller.
Auction clearance rates remain well below average across the nations capitals. Across the capital cities, only Melbourne recorded an auction clearance rate which was greater than 50% during the last week and current clearance rates are well below established benchmarks. It should be kept in mind, however, that auctions clearance rates are more reflective of the upper end of the market where sale by auction is much more common. Affluent markets are struggling to attract buyers due to the current economic conditions and supply levels have crept up in recent months.
* Information supplied by www.rpdata.com.au
