Auction sales slump to 13-year low
By Lisa Pryor, Property Reporter
April 5, 2004Sydney has recorded the lowest auction clearance rate for March in 13 years, with more than half the properties listed failing to sell under the hammer.
The adjusted rate, which reflects changes in the way the rates have been calculated since last year, was 45.4 per cent last month, down from 51 per cent in February, Home Price Guide figures show. It was the lowest March figure since 1991, said Louis Christopher, research director at Australian Property Monitors.
“It is falling away at this time of year when, seasonally, it should be rising week to week.”
Vendors who have relisted properties after they failed to sell last spring will be disappointed to find their chances of selling have not improved.
In Lewisham, the owners of a four-bedroom house knocked back a bid of $950,000 in October and put the property back on the market with an asking price of $995,000. It is now listed for $839,000 after it was passed in at $810,000 last month.
In Strathfield, a three-bedroom house in Nicholson Street was passed in at $1.06 million last month, after selling in November for $1.18 million.
While conditions are sluggish, the clearance rate would have to drop below 40 per cent before it was considered a sign of a crash, Mr Christopher said. The lowest clearance rate the Home Price Guide has recorded was 33 per cent, in June 1989.
Conditions for sellers improved slightly at the weekend, when the adjusted rate rose to 49.5 per cent. Many properties are still being withdrawn before auction. Thirty-four auctions at the weekend were postponed or cancelled.
Low clearance rates hid the fact that many properties were snapped up by buyers soon after auction, said Peter Kelaher, a buyers agent and managing director of PK Property Search and Negotiators.
[baaa]
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
I had a look at a property on the weekend of 27/28 March. I have had two phone calls from the Agents. I think it was about 3-4 yrs ago since I got a follow up call.
Dare say – I aint going to call. Looks like the agents got to work harder now.
To right Yack, the good times are gone and I have to feel a little sad for the newbies who purchased realties over the last 12 months.
Sometimes I wonder about these sales guys, I phoned one a few months ago who had been chasing me for a long time. I made a promise that if I ever sold my own place that I would put it the hands of the most determined. Still haven’t had a call??
Whats going on Yack!
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
I feel sorry for the agents who have only worked in boom times. They don’t know what to do!!
Did I say I felt sorry for them…that was a typo.
heheJ
I have no sympathy for them either……
Low auction clearance rates are great news!
Anyone who bought in the last 12 months shouldn’t be looking to exit anyway. Property is a longer-term asset not a short-term one.
New agents take their chances. They had the same information as everyone else six months ago.
Cheers,
Aceyducey
Appears quite the opposite is happening here in the west.quote from sunday times”I hate the term sea change but there is no doubt thatb from Kalbarri to Albany the coastal property demand is very strong.”
“Demand for housing in the ….. area has been driven by industrial expansion,tourism and lifestyle demands.”
“….is expanding and will create 500 jobs………demand for 200 rental properties…”
RussSo many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
Near my work a new complex of
20 townhouses finished just before X-mas
4 are on the market since January
one went to Auction last sat Past in
$45000 shortWent to 3 auctions on the weekend and we were the only ones there. The auctioneers at 2 put in vendor bids above what we would pay anyway. The 3rd was a joke. There was one guy put in a bid 5k over the vendors bid and they then went around trying to con people into paying more. Not vey ethical in my book. A bid is a bid, either they should pass in or sell. Anyway clearnce rate was poor eh!
Dave
Its seems the end is nigh for the auction squads.
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
Originally posted by siacci:Went to 3 auctions on the weekend and we were the only ones there. The auctioneers at 2 put in vendor bids above what we would pay anyway. The 3rd was a joke. There was one guy put in a bid 5k over the vendors bid and they then went around trying to con people into paying more. Not vey ethical in my book. A bid is a bid, either they should pass in or sell. Anyway clearnce rate was poor eh!
Dave
He was probably working for the agent, they do have dummy bidders…..LOL
Regards Bear
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DONT MISS OUT!!!!!I’ve been noticing houses sitting around longer, fewer auctions and less spirited auctions (with many houses being passed in). So there have been several signs for me that the residential market has been slowing in my area. However, what really drove it home was a phone call I received from an agent last week. He mentioned that my name was on their books and was I still interested in buying in their area? I replied that I had put my name on their books A YEAR AGO!! [thumbsdownanim and I’d already bought (my PPOR). I think they might be feeling the pinch already[laughing] I’m enjoying seeing the agents squirm and can’t wait for the service to improve[cigar]
MattYay.. Buyers market!
I’ll have one of those and two of these ones and a mixed bag of those ones,
oh.. and i’d like it cheap
and i’d like free wine and please call me “knight of investing”
oh.. and you two agents that shrugged me off last year you can get on your knees and………..
only joking.I might pay extra for properties, go against the flow y’know. Orthodox gearing. (where you pay more for properties in a down market to claim insanity at the bankruptcy hearing). he he
All to get that padded cell that money cant buy.[biggrin]
lifexperience
Originally posted by BEAR1964:[/i[
He was probably working for the agent, they do have dummy bidders…..LOLRegards Bear
I thought Dummy bidding is illegal now
In Victoria anywayOriginally posted by mysta:In Lewisham, the owners of a four-bedroom house knocked back a bid of $950,000 in October and put the property back on the market with an asking price of $995,000. It is now listed for $839,000 after it was passed in at $810,000 last month.
please tell me we are not talking about 12 The Boulevarde? If so, im thinking they should have taken the $810k and run with it
julie
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