Poor auction clearance rates over the weekend have reaffirmed suggestions that the traditionally hot spring selling season may be delayed until later this year.
Last week, Raine & Horne’s Angus Raine told Smart Property Investment that the spring selling season may not begin until December as potential buyers continue to sit on their hands.
According to data from Australian Property Monitors this statement may not be far off the mark, with auction clearance rates failing to top 60 per cent for the last three weeks.
In Sydney, just 58.6 per cent of properties cleared over the weekend – down from 60.9 per cent this time last year.
The story was much the same in Melbourne, with just 52.9 per cent of properties clearing this weekend.
The most expensive property to go under the hammer this weekend was a three bedroom house in Clovelly, which sold for $2.385 million.
At the other end of the price scale, the most affordable home to be sold at auction was a one bedroom unit in Fairfield, which sold for $167,500.
Real Estate Institute of Victoria chief executive Enzo Raimondo said the current state of the global economy is causing many buyers to question home ownership.
“There can be no doubt that ongoing concerns about the health of the global economy are having an impact on the confidence of buyers in the Melbourne auction market,” Mr Raimondo said.
“Next weekend there are only 50 auctions, less than half of those on Saturday. No clearance rate will be issued.”
Moreover, Adelaide and Brisbane continue to underperform, with only 23.5 per cent and 13.3 per cent of respective properties selling under the hammer over the weekend.