Melbourne sellers appear to be digging in their heels and holding out for the sale price they want at weekend auctions around the city.
The auction clearance rate dropped again on the weekend – this time down to 56.1 per cent. A couple of weeks ago it was 62.3 per cent.
According to Chris Tolhurst from Domain, real estate agents are engaging in somewhat of a power struggle with vendors who they say are expecting a little too much for their property in the current softening market.
The property market is currently a fragmented beast, and Craig Stephens from Jas Stephens auctioneers in Yarraville told Domain the market in his area was indeed soft but still threw up some surprise results.
“It has softened progressively over the last three to six months,” he said.
“We’re seeing one, maybe two bidders at auctions. But every now and then you get a spike and a bit of positivity in the marketplace.”
Mr Stephens said properties that really jumped out were still achieving results.
“Most of the townhouses out there tend to struggle at auction, but when someone puts a lot of design and quality appliances into a townhouse and decorates it with nice furniture, you can get a great result,” he said.
Dennis Dellas from First National Lindellas in Box Hill said potential rises in official interest rates was spreading hesitancy among buyers.
“If you purchased property in early to mid-2017, prices have come back,” he told Domain.
“They have probably gone back to where they were in 2016 with some buyers wary of what potentially is going to happen with interest rates.”
