Sadly, Sydney’s sales no longer sizzle.
Australian property portal Domain reports on the latest numbers from the capital city’s auction market and finds that while available properties abound, buyers are becoming an increasingly rare commodity.
Sydney recorded a clearance rate of just 59.2 per cent on Saturday, well down on the previous weekend’s 63.3 per cent and significantly below the 75.5 per cent recorded over the same weekend last year. The Sydney market continues to track at the lowest levels since the spring of 2012 and with no sign of sharply falling buyer activity and clearance rates bottoming out.
Why have the buyer’s abandoned the auction? Domain credits banks boosting the interest rates for investors over the past few months and the more recent rise of interest rates for owner-occupiers as taking a bite out of buyer confidence.
Sellers have also become more hesitant, with the number of property withdrawals from the crowded auction block up over consecutive weekends and up over 50% from the same weekend last year.
Wait-and-see is now the mantra for the once white hot market.
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