Property auctions end the year in a low note

The last real estate auction for the year ended in a low note as clearance rates failed to grow and sellers pull out and opt to sell their properties next year.

Prices are forecast to even drop lower as more sellers take their properties to the private market instead of an auction. According to Real Estate Institute of Victoria, clearance rates improved slightly up to 64 percent from 61 percent compared to the previous last week although listings plunged to 605. The Melbourne clearance rate came up to just more than 52 percent says the Australian Property Monitors. A clearance rate increase to 64 percent is seen as a sign of the strength of the market.

"This weekend is the last for auctions this year. Including this weekend's results the overall clearance rate for the year is 71 percent, lower than last year's 81 percent but higher than in 2008 when it was 63 percent,” said Australian Property Monitors Chief executive Enzo Raimondo. "The clearance rate may be lower than 2009 but this obscures the fact that 30 percent more homes have been sold at auction this year. More vendors have been successfully selling their home at auction, highlighting the overall healthy state of the market this year."
In Sydney, clearance rates came in at 50.6 percent with 400 properties up for auction while Adelaide recorded had a clearance rate of 45 percent. On the other hand, Brisbane had a clearance rate of 28.6 percent.