Auction clearance rates have fallen sharply in south east Queensland, dropping by around 30 per cent since early spring, new data shows.
Following a strong 80 per cent auction clearance rate for the first week of spring in south east Queensland, September has ended with an overall 50 per cent clearance rate, according to Queensland-based independent auction house Jason Andrew Group.
The Group reported that the result was in line with the year-to-date clearance rate of 50 per cent.
Director of Jason Andrew Group, Jason Andrew, said the month that traditionally launches the year’s biggest real estate season had brought a noticeable increase in buyer activity.
However, an increase in available stock and in sellers’ expectations for price have meant the clearance rate overall has plateaued.
“The average number of bidder registrations has risen from 1.73 year to date (YTD) to 2.24 in spring, and crowd sizes are also almost 20 per cent larger,” Mr Andrew said.
“But at the same time, seller willingness to shift their original reserve price in order to achieve a sale under the hammer has fallen from 4.16 per cent YTD to 2.94 per cent in September.
“The inner-city market of Brisbane is the exception, where the average vendor shift has remained higher at 4.46 per cent, leading to a significantly higher clearance rate of 70 per cent for September.”
Mr Andrew said the data was evidence that while buyers were more active, they remained on the whole clearly unwilling to pay a premium at this point.
“Sellers who are believing the hype that prices are already on their way up, and who are clinging to prices above current market value, will not achieve a sale in this environment,” he said.
“Sellers need to be clear that clearance rates this year are still falling short of the equivalent period last year and are well behind those rates currently being experienced in Melbourne and Sydney.
“The Brisbane market is not booming, nor are there any signs pointing in that direction at this point.”