For the first time this year, auction clearance rates dipped below 80%, which could signify that the housing market boom is cooling down.
CoreLogic data revealed the volume and clearance rates were down last week, with 2041 capital city homes going to auction, with a national clearance rate of 78.5%, down from 80.5% from last week.
Sydney’s auction clearance was down from 84.8% to 82.1%, while Melbourne’s volume fell to 770 properties with a 76.1% clearance rate.
However, Canberra and Brisbane experienced stand out auction performance, with a clearance rate of 97.7% and 76.2%, respectively.
What are the signs of slow down in the housing market?
There is a slow down in the rate of growth of the housing values.
While dwelling prices increased across Sydney, Melbourne, Brisbane and Perth by 2.3%, 1.5%, 1.8% and 0.9% respectively, the figures are lower than the growth experienced in March.
The end of JobKeeper and other government support packages and the rise in the number of homes entering the market are other factors causing the housing market to cool down.
If auction clearance rate also starts dropping, we may begin to see the property market cool down slightly.
However, it’s too early to make the call as a week’s data isn’t enough to show a trend.
If the market does cool down, buyers will be able to come to property transactions with more power.
Up until now, the property market was dictated by sellers, but this could change if the trend continues.
Whether it’s a buyer’s market or a seller’s market, getting pre-approved for a home loan helps you to know how much you can afford.
Our mortgage brokers will help you throughout your home buying journey. Call us on 1300 889 743 or enquire online.