Buyers Advocate Melbourne

Tomorrow is a day that will help ‘shed the light’ on early market conditions for 2011.

Stock levels will be sufficient enough for a guide and some overall good quality property is being offered.

My thoughts are that we are in for a cautious start.  A clearance rate of between 50 – 60% should be about right.  Remember that many auctions that fail can go unreported.  Which means a number reported in the media can be downgraded somewhat.

Good luck if you’re attempting to buy anything tomorrow.

Last weekend we saw clearance rates plummet to 61%, this surely can only be directly linked to a lack of confidence in the market as a result of recent interest rate rises.

With a steady decline in auction success, is it time we ask how relevant they are? With another 2000 auctions over the coming two weeks, are property sellers jumping on, what was once a good selling method, and now, used as a tool for agents to turn over high volumes of property?  Some properties will always be successful at auction and many should simply not be considered for the process.

Spring has long been the ‘ideal’ time to sell a property, but given the recent decline in success of the Auction process it may be time we see more Private Treaties.  The expense associated with an Auction campaign has always been a bitter pill for vendors to swallow, even more so when the property has passed in, let alone the stigma associated with a failed Auction.

Whereas if you are buying, failed Auctions can be a blessing, the ball is now firmly in your court. A chance for negotiation to take place, without the public analysing every move that is made.  And with the benefit of having an asking price to work with, rather than a fictitious auction quote price.

We may see clearances drop to the 50% range as they have in Sydney, any extra pressure from the banks will certainly not be do anything to encourage buyers to drip into their pockets or more importantly put their hands in the air on the weekend.