The auction clearance rate just stopped falling. Will property prices follow?

An auction clearance rate of 60 per cent is considered a balanced market, while anything less means property prices are likely falling.Buyers are cautious about bidding, while owners are starting to realise prices have fallen since last year.Cautious home buyers are holding back at auction as interest rates jump and the cost of living rises, and new figures show just over half the auctions scheduled in August sold.

“There is a lot of uncertainty in the market,” she said. “Whatever happens to the cash rate will impact their borrowing power. We are seeing more people taking the more cautious, I-will-wait approach.”Buyers are also mindful of their rising cost of living, upcoming school fees, bigger energy bills and planning for Christmas spending, she said.

In Sydney, AuctionWorks chief auctioneer Jesse Davidson attributed the slight improvement in the clearance rate to a shift in sentiment from vendors as they adjust their expectations and become more willing to make a deal rather than holding out for high prices. The highest demand is for renovated homes, while units in areas of oversupply attracted less interest, he said.

elizabethredman Not when the RBA hikes another % or two

elizabethredman FOOP. Fear of over paying.

elizabethredman Lol. It's just real estate agents not reporting again to stave off fear about the property market.

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