Clearance rates indicate prospective buyers are steering clear of auctions but industry experts assure that’s not the case.
Ray White Campbelltown principal Nick Borrelli said many are still attending auctions but not bidding, then as soon as the properties are passed in they rush to make a deal.
“We’re finding that the ones that aren’t selling, within a week or two the majority are sold,” he said.
“Our 30-day clearance rates are still pretty good.”
Mr Borrelli said not being able to purchase under auctions conditions as well as a lack of confidence in the market were stopping many from bidding under the hammer.
“People might not be in a position or they’re being a little more cautious,” he said.
“From what we’re seeing with ours, that would be the case.”
Adelaide’s property market isn’t dead, real estate experts assure.
Ray White Campbelltown principal Nick Borrelli. Picture: Supplied.
Latest realestate.com.au figures show Adelaide recorded a 49.4 per cent clearance rate on 79 auctions over the weekend – the nation’s second highest result behind Perth’s 57.1 per cent on 7 auctions.
At the same time last year, realestate.com.au figures show it was 74 per cent.
Mr Borrelli said the market had eased considerably after years of strong competition and staggering price growth, which was expected to happen at some point.
But several factors over the past few months, including tax reforms and interest rate rises, were rattling confidence for some.
“I feel once buyers start to see this is the new landscape, nothing scary is happening, they start to feel a little more confidence,” he said.
“There have been much worse markets than what we’re dealing with at the moment.”
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One of four properties Mr Borrelli took to auction over the weekend sold under the hammer – a Blair Athol house was snapped up by a developer for $1.322m.
Harris Real Estate auctioneer Tom Hector said he was calling “more auctions than ever”.
“In my market, there’s still plenty of buyers for my properties,” said Mr Hector, who sells predominantly in the sought-after east and northeastern suburbs.
“I’ve found this July to be one of my best.
“I’ve got an auction on Wednesday and I’m expecting five to 10 bidders.”
Harris Real Estate auctioneer Tom Hector. Picture: Supplied.
Turner Real Estate managing director Lachlan Turner. Picture: Supplied.
Mr Hector said the market had cooled over the past few months but being realistic and honest with sellers about expectations was the key to selling.
“When the budget did hit, there was a lot less activity, but there’s no question the market’s more level now,” he said.
“There’s no panic buying now.”
Turner Real Estate managing director and auctioneer Lachlan Turner said earlier this month many auctions were still achieving extraordinary results, noting one property at Glenalta attracted 11 bidders and sold for $100,000 above reserve.
“Units are just insanely popular too, they’re flying out the door and getting record prices,” he said.
Mr Turner said sellers were having to be realistic with their price expectations as buyers had more power.
“It’s certainly softening a bit but it’s OK,” he said.
“I think right now there’s a really strong element of people adjusting so there’s a bit of a sit and hold approach at the moment.”
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