Are you a homeowner wondering if now is the right time to sell?
You won’t be alone. With the Australian cash rate stuck at 4.35% and the Reserve Bank showing reluctance to reduce mortgage costs in the near future, many potential sellers are asking their agents this question.
As an experienced real estate agency in your area, we know there’s no shortage of opinions about the future of property prices.
Studying auction clearance rates weekly is a good general barometer for the market’s mood. We wouldn’t claim them to be a crystal ball, but auction results will give you an indication of how buyers are feeling.
We’ve looked at the week ending June 16 to gauge what’s happening in markets across Australia.
In this particular 7-day period, some 2,232 homes went under the hammer across Australia’s capital cities. While the preliminary national clearance rate dipped slightly to 71.4%, this still indicates a healthy level of buyer demand. Here’s a quick breakdown of the cities.
- Sydney: A preliminary clearance rate of 75% shows a healthy, vibrant market.
- Melbourne: The 70.2% clearance rate indicates continued demand, though slightly less competitive than Sydney.
- Adelaide & Perth: A whopping 89% clearance rate means sellers are in the driver’s seat, often achieving or exceeding their asking price. (Perth’s number is based on a low number of auctions.)
- Brisbane and ACT: These markets are a bit cooler when it comes to auctions. Brisbane achieved a clearance rate of 68.9%. However, its values rose 1.4% in May—the third fastest gain for a capital city. Lower clearance rates can also mean more opportunities for savvy buyers to negotiate.
If you’re thinking of selling, these strong clearance rates are a good sign of a healthy buyer appetite. Talk to a real estate agent for a personalised assessment of your property’s potential. We’d be happy to help. Below are some advantages of selling your home by auction.
- Competition: Auctions create a sense of urgency and excitement, encouraging buyers to compete and drive the final price as high as possible.
- Unconditional Sale: The highest bidder usually enters into an unconditional contract, meaning the sale is less likely to fall through due to finance or building inspection issues.
- No Cooling-Off Period: In most cases, there is no cooling-off period for the buyer, reducing the risk of them changing their mind after the auction.
Please note that while auctions can be a successful way to sell property, they are not suitable for every situation or property type. It’s important to consult with your agent to determine the best method of sale for your specific circumstances.