With clearance rates below 65% for the last couple of weeks, there’s undoubtedly been a shift in our market. I spoke with Domain on Sunday about my thoughts on what this means for buyers and sellers – see more here.
In general, we’re seeing buyers becoming more cautious – and more prepared to ‘wait it out’ rather than jumping at properties that tick most of their boxes because they’re worried about missing out.
Vendors need to be mindful that it’s a different market to the one that was consistently achieving clearance rates of 80% and up 12 months ago. This doesn’t mean that they won’t still achieve a good price for their property – what it does mean is that they need to listen to the market and be prepared for fewer bidders and buyers overall.
A scenario that’s becoming more common at auction is a stalemate – where genuine buyers fail to bid and the property is passed in on a vendor bid. If you’re serious about buying, I always recommend that you bid to ensure the property is passed in to you – this gives you an opportunity to negotiate directly with the vendor following the auction, without any other interested parties involved.
A lot can happen quickly once a property is passed in – so if you’re interested, it’s essential you make yourself known to the agent and vendor. Often, by the time we receive a phone call on Monday morning, the property has been sold – the best way to ensure this doesn’t happen to you is to be the highest bidder at auction.
Please get in touch with your local Greg Hocking office for specific advice about what’s happening with the market in your area.