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Date Published : Tuesday, March 18, 2008
The Australian property market is slowing down, with housing auction clearance rates falling rapidly, a new study has revealed.
Rising interest rates and the tighter availability of home loans means that auction clearance rates in Brisbane fell to just 24 per cent, less than half the rate as at the same time last year.
The figures from the Real Estate Institute show that property clearance rates dropped below the 50 per cent barrier in Sydney, with 48 per cent of homes up for auction being sold - an 11 per cent decrease.
However, in Melbourne, clearance rates were up to 67 per cent on record housing volumes, with over 1,400 properties being put up for auction during the last weekend.
The Australian reports that housing volumes were markedly higher in all capital cities last weekend, as a result of the early Easter break and the rising stress on mortgage repayments caused by increasing interest rates.
President of the Real Estate Institute of Victoria Neil Laws told the publication: "The market is very delicately poised.
"Anecdotal evidence from agents suggests interest rates have affected buyer confidence. The auctions this weekend were erratic; some went gangbusters and some were disappointing. These are very interesting times."
In related news, a report by the National Centre for Social and Economic Modelling has found that Australia has one of the least affordable housing markets in the English speaking world.
The report found that house prices have jumped 400 per cent between 1986 and 2007, while income has risen just 120 per cent.
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