Despite feeling the brunt of the winter chill, auction activity is expected to remain resilient with an upswing in spring, RP Data research analyst Tim Lawless has said.
“We would expect that auction clearance rates will remain at similar levels to those currently being recorded through July and August,” Mr Lawless told The Adviser.
Mr Lawless said despite the fact that clearance rates have been trending downwards, the number of auctions taking place has been “remarkably resilient”.
Nevertheless, Mr Lawless expects the number of properties being taken to auction will begin to fall in response to the fact that fewer properties are selling at auction.
“[There’s a] general notion that the market is quieter during winter,” he said.
According to Mr Lawless, the performance of auction markets over the next six months will largely be impacted by the performance of the economy as a whole.
“We expect that the spring selling season should bring an increase in the volume of auctions after the expected slowdown through July and August,” he said.
However, he said buyers will continue to remain cautious.
“The spring selling season is also likely to record some improvement in auction clearance rates however, given the overall state of the economy and the fact that property value growth has been so strong over the last 12-15 months, I would not expect clearance rates to reach the heights recorded during last year’s spring or those recorded earlier in 2010,” he said.
“Any lift in clearance rates during spring is likely to be most recognisable in Sydney and Canberra.”
(By: Belinda Luc, Friday, 09 July 2010)