Auction results improve, but buyers still cautious

Auction clearance rates around the country received only a marginal boost following last week’s 100-basis-point cut to the official interest rate, with overall buyer interest remaining low.

Auction clearance rates around the country received only a marginal boost following last week’s 100-basis-point cut to the official interest rate, with overall buyer interest remaining low.

Real Estate Institute of Australia president Noel Dyett says it’ll take a few more months before any real movement in the market is visible.

“It’s always a bit difficult coming into this time of year. Everything tends to slow down. Some of the clearance rates were pretty good. Others I think are showing the obvious impacts of the financial crisis,” he says.

“I would expect interest to pick up into the new year. Buyers are generally focused on Christmas rather than going out buying houses. I would think that once the festive season is out of the way, I’d anticipate we see a bit more interest in the market.”

But clearance rates in the capitals were mostly positive, with all but one up on last week’s figures.

Sydney’s clearance rate jumped from last week’s 47% to 52%, with 174 properties selling at a total of $101.7 million. Melbourne also saw a rise from 51% to 55% and saw the country’s highest auction price of $2.502 million for a three-bedroom home in the exclusive suburb of Toorak.

Adelaide saw its rate leap from 37% to 53% with 10 properties selling at a total of $3.8 million. Meanwhile, Brisbane was the only city to experience a decline, falling just two percentage points to 27%.