Auction clearance rate sinks to three-month low as property market slows
Australia's auction clearance rate has slumped to a three-month low, while new data shows the number of unsold homes has surged by more than 20 per cent in the past year.
The auction clearance rate in Australia's property market has reached a three-month low, indicating the ongoing slowdown in the sector. This decline is attributed to factors such as long weekends in major cities and the Reserve Bank's decision to increase the cash rate. Cotality, a property research firm, reported that auctions in capital cities fell 12.8% compared to the previous week, with Sydney experiencing a 61% drop and Melbourne a 38.5% decrease.
Economists predict a potential 10-15% drop in capital city property prices from peak to trough. The number of unsold homes has surged by over 20% in the past year, with more than half of the auctions held last week not resulting in successful sales. Additionally, 10.5% more older listings have emerged compared to a year ago, contributing to the prolonged unsold status of some properties.
The number of distressed sales in September rose by 29% compared to the same period last year, amid growing concerns about Australia's economic outlook and housing market stability.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
