The property market is showing signs of cooling down as we head towards Christmas, with Melbourne’s auction clearance rate dropping to its lowest level since spring began.
RP Data figures released show the weekend clearance rate dropping to 66.7 per cent, after being well into the 70s for the last three months.
Sweeney boss Darren Dean summed up the current housing market well when he spoke to the Herald Sun.
He said only the premium properties were selling well under auction.
“A and A-minus grade stock is still selling with aplomb but what we are seeing is that any property with a chink in its armour has been noticeably affected in recent weeks.”
“If it is C-grade, I suggest put your cue away this year and try again next year.”
Real estate agents in Melbourne’s south-east have commented that vendors have been keeping a keen eye on the market’s recovery and have been getting ambitious with their reserve prices when trying to sell.
Robert Cincotta from Ray White Oakleigh said buyers are paying a premium for properties in locations such as Oakleigh and Chadstone, but vendors with unrealistic price expectations will struggle because buyers have plenty to choose from.
“Today’s buyer is very well informed about recent sale results and, even in a hot market, will not buy a home overpriced by a $1 million,” he told the Herald Sun.
Unit sales over the weekend were particularly sluggish, with houses outselling them by a factor of 14 perecentage points.