Auction clearance rate slumps below 50 per cent for third week
Australia’s auction approval rate has fallen below 50 per cent for the third week in a row as falling property prices continue to deter buyers.
The initial success rate stood at 49.8 percent this week, according to data provider Cotality.
That’s slightly higher than the previous week’s 49.2 percent, but that figure was later revised to 45 percent after all results were counted.
Rising interest rates, a strained economy in general, and the government’s removal of tax breaks for real estate investors have put pressure on buyer confidence.
Property prices are falling faster in Sydney and Melbourne, while growth is slowing in Perth, Brisbane and Adelaide.
The typical winter slowdown has also further blurred the outlook; auction listings were down 17.2 percent from the previous week and 19 percent lower than the same period last year.
