Auction clearance rates in Australia’s two biggest cities drop to nearly two-year lows after the RBA’s surprise interest rate rise chills demand.

Auction clearance rates in Australia’s two biggest cities dropped to nearly two-year lows over the weekend after the Reserve Bank’s surprise interest rate rise chilled buyers’ demand.
Clearance rates in Melbourne, dropped to 61 per cent from 67 per cent the week before, according to the Real Estate Institute of Victoria (REIV).

In Sydney, they fell to 54.6 per cent from the previous week 57.5 per cent, according to Fairfax-owned Australian Property Monitors (APM).

The slump in Sydney and Melbourne brought clearance rates to their lowest levels since December 2008, according to REIV and APM, when the average standard variable interest rates reached a peak for that cycle of more than 9 per cent.

The RBA shocked home owners and prospective borrowers by lifting the official cash rate to 4.75 per cent from 4.5 per cent last week despite inflation remaining at modest levels.

That move added $46 onto the monthly cost of on a $300,000 mortgage, after earlier rate rises piled on an estimated $300 more in monthly repayments from October 2009 onwards.
“Buyers and sellers are unaware of what direction money policy will be,” REIV spokesman Robert Larocca said. “That sort of uncertainty is not good for the real estate market.”

“We had a clearance rate around 68 per cent for four months now, at the same time the spectre of a rate rise has hung over the market,” said Mr Larocca.

The average variable mortgage rate stands at 7.49 per cent, after Commonwealth Bank lifted their rates nearly double the RBA’s move  -  by 45 basis points  – last week . CommBank’s three major rivals have yet to react.

Home prices have been tracking sideways in recent months, after posting gains of 1 per cent a month through 2009, fuelled by low interest rates and a cash stimulus by the government.  
National city home prices rose just 0.1 per cent, seasonally adjusted, in September, according to RP Data-Rismark, taking the median city home price at $455,000. 

According to the Australian Bureau of Statistics, the weighted average of eight capital cities rose just 0.1 per cent in the three months to the end of September.
While the low clearance rates over the weekend indicate uncertainty in the market, they haven’t dampened volumes of sales.

Next week in Melbourne 920 properties are up for auction, according to the REIV.

On the following two weekends, more than 1000 houses are listed for sale.

The market is not pricing in an interest rate next month when the RBA meets.

Story by Chris Zappone www.smh.com.au

View the original article here

The inclement weather Saturday did not affect demand at this weekends auctions with a clearance rate of 67 per cent recorded.

This is a good result in light of the fact that this weekend has a higher number of auctions than the comparable weekends in the past 5 years.

There was a total of 343 auctions reported of which 229 sold and 114 were passed in, 68 of those on a vendors bid.

This weekend last year saw 338 auctions reported and a clearance rate of 83 per cent.

Stock levels continue to be high with 2600 auctions expected in the next three weeks.

Enzo Raimondo
CEO REIV

TOTAL AUCTIONS

This week: 343
Last Weekend: 1051
This weekend last year: 333

S Sold at Auction: 196
SB Sold before Auction: 31
SA Sold after Auction: 2

Passed in: 114
Passed in on vendor’s bid: 68

Clearance rate: 67%

Postponed: 3
Withdrawn: 0
Auctions with no result: 90

PS Private Sales: 634

Total Volume (Auctions): $156.13mil
Total Volume (Private Sales): $316.97mil

Total Auctions Houses: 225
Clearance Rate: 68%
Median Price: $633,500
Total Value: $103,396,500

Total Auctions Flats/Apartments: 108
Clearance Rate: 68%
Median Price: $552,500
Total Value: $51,034,000

Total Auctions Vacant Land: 10
Clearance Rate: 30%
Median Price: $848,500
Total Value: $1,697,000

View the original article here

The auction market is still performing strongly but vendors of higher-end properties are opting for private sales instead of risking their home at auction, experts warn.

Real Estate Institute of Australia president David Airey warns that although the Melbourne market recorded a 68% clearance rate, the top-end is still struggling with discounts a common occurrence.

"The average price was only about $800,000. People at the top end have decided the best way for them to sell is through private sales, rather than risking through auctions. That’s the same across Australia, where the lower end is moving, but the higher end is more average."

Airey points to the sheer number of pass-ins occurring in Melbourne. The REIV figures suggest 325 properties were passed in, and Airey says more of these would have been likely in the top-end areas.

Christopher also believes the market in the top-end properties is moving slowly.

"It’s a very difficult market to read. I’d say the top end is quite patch. You could get some very good sales, but there are still records of properties that aren’t performing particularly well at all. It’s definitely a patchy market."

However, other markets have remained strong, these experts say. Melbourne managed record a 68% clearance rate out of 1,031 auctions, according to the REIV, with chief executive Enzo Raimondo pointing out that rate hasn’t changed during the past eight weeks.

"In light of the very high number of auctions this weekend the clearance rate of 68 that was achieved is a very healthy result and demonstrates that underlying demand is good," he said.

Some analysts predicted prices might drop due to the sheer number of listings. Auctions have backed up over the past few weeks due to the AFL Grand Final and the subsequent replay, while the upcoming Cup Weekend has brought forward some sales.

"Including this weekend’s activity, the REIV has seen average weekly auction listings increase by around 30% compared to winter; interestingly, the clearance rate for spring has not changed substantially, with around 68% of homes selling during the first eight weeks of spring."

Airey agrees, saying the result was "a particularly solid one".

But the rest of the country hasn’t performed so well. Christopher says Sydney’s result in the mid-50s reveals neither buyers nor vendors have negotiating control.

"That result represents a market equilibrium, where neither buyers nor sellers have control. However, that result does indicate that there could still be price rises occurring there."

"Outside Sydney and Melbourne, and putting Canberra aside, it’s a pretty weak market out there. I would argue prices are falling in southeast Queensland, and Adelaide is looking very slow as well."

Christopher also points out activity in the Northern Territory, which he says is becoming scarily bubble-like. "Darwin is a market that is looking very scary at the moment and very bubbly. When it turns, it’s going to be a steep ride down."

According to Australian Property Monitors, Sydney recorded a 56% clearance rate out of 501 auctions. Total sales came to $149 million.

Adelaide recorded a 63% clearance rate out of the 48 auctions on the market, with total sales coming to $9.9 million, while Brisbane recorded a rate of 30.4%, with 57 total auctions coming to a sales total of $4.8 million.

Story by Patrick Stafford www.smartcompany.com.au

Lois Buckett Negotiating with a Phone Bidder

A recent article in The Age stated

“Real Estate is no longer a man’s world as more women forge successful careers for themselves in this lucrative industry.

To say that women are a force in real estate is a glaring understatement; they have grown in numbers and are increasingly excelling in every area of the industry from property management to sales, auctioneering and investment advising.
Perhaps one reason for their success is the fact that women are also an increasing power in terms of home buying and property investment in their own right.  Studies show that 18 per cent of women buy property by themselves in Australia.”

This article was particularly interesting to me as an independent Real Estate Agent of the fairer sex and having jumped many a hurdle to attain the level of success and recognition that Lois Buckett Real Estate now represents.

Over the past 6-7 years the office in Lennox Head has been predominantly supported by female co-workers whilst expanding and growing rapidly.  Although the rental, sales and auction markets have fluctuated constantly over the years coastal and hinterland real estate has experienced huge growth over the past decade.

With a sister office opened in Bangalow and a majority of female staff at Lois Buckett Real Estate we have the area well and truly covered.

I personally feel that having women on the team is tremendous.

Generally speaking women have an ability to work methodically, are able to multi-task and easily build relationships with people in all facets of the industry.

From the female perspective, a profession in real estate can offer flexibility and opportunity and a chance to meet people and develop good communication skills in a positive environment.

Having said all this, a few of the male species have now infiltrated the office and this adds a new dimension to the equation!  What I look for in an employee is someone who is passionate about real estate, is truthful and forthright and enjoys working in a team environment.

I’m happy to say that gender is not a governing factor.

Peter Kakos in Action

Auction 1st May

Our previous mega auction held in February proved a huge success and resulted in property sales in excess of $13,000,000.

The next MEGA AUCTION date is set for Saturday 1 May 2010 at 9am with registration for bidders starting at 8.30am.

With so much activity in the property and real estate market place and predictions of huge growth factors in our beautiful area we are, once again, anticipating a successful auction across the board.

We are thrilled to have Peter Kakos as our on-site auctioneer as we all are aware of his amazing talent and dedication to the real estate industry.  The event will be held at the Ballina Beach Resort, Compton Drive, Ballina.

This auction is proudly marketed by Lois Buckett Real Estate.

We are offering a huge range of property, land, homes, units and rural acreage in sought after areas of Lennox Head, Ballina, Bangalow, Cumbalum, Clunes and Knockrow.

Our Autumn Edition of the Coastal & Hinterland Property Guide has just hit the streets. 

This is jam-packed with details on all our auction properties and a whole lot more.

Look out for this up to the minute publication in your letterbox or in this week’s issue of the Byron Bay Echo.   For More Information Visit Any One of These Properties on our Website Lois Buckett real Estate.

Hope to see you there!!

RESULTS:

It was a very successful day with 2 properties selling under the hammer and 1 sold prior to auction day.

Our sales staff are busy negotiating with several other interested parties and are close to finalising the sale of 5 excellent properties off our Auction List.

Watch out for the next Mega Auction in June 2010!!!!!!

Lois Buckett

Lois Buckett Real Estate based in Lennox Head and Bangalow specialises in meeting your real estate needs throughout the region.

With every real estate agent claiming to be the best it can be hard to judge just who to choose. Scratch the surface however and you’ll discover dramatic differences in the way agencies operate and the results they achieve. So how is Lois Buckett Real Estate any different?

Let us let you in on a few secrets.

1. We aim for a great result, not just a fast one

At Lois Buckett Real Estate our focus is always to deliver the best possible sales price. We will never leave you wondering, “Could I have done better?”

2. We don’t rely on reputation to sell your property

If you want great results you need an agent dedicated to achieving them. Lois Buckett Real Estate’s experienced sales agents are backed of a dedicated marketing and support team, all working together to bring you more buyers and a bigger sales price.

3. We offer true auction expertise

Many agents make claims about their auction success, yet few come close to matching the results achieved by Lois Buckett Real Estate. Come the big day our experience can mean a big difference in the price achieved.

4. We are working to be even better

A great performer always looks to improve. As part of the Real Estate Results Network, we are working to further develop the skills of our team and implement strategies to deliver you the very best in service and results.

For an optimum experience in Real Estate in Lennox Head, Bangalow, Ballina, Byron Bay and the Hinterland why not call on one of the experienced staff at Lois Buckett Real Estate.