Why are auction clearance rates dropping?

If you follow your local auction results, you will have noticed that clearance rates have steadily reduced over the last few weeks.  This is a tell-tale sign of a buyers’ market as it shows that competition between buyers has relaxed and is no longer the essential driving force behind a successful auction. 

This isn’t cause for alarm, it’s part of the life cycle of real estate and we have seen it many times before.  We are still meeting plenty of genuine buyers at our open homes but in the current market conditions, there are often only one or two seriously interested buyers per property.  Consequently, homes may take a little longer to sell and as we have already predicted, more homes will be sold through negotiation or from an agent’s Buyer Database.   For example, we have just sold 53/33-41 William Street, Botany after only two open homes, using our Buyer Database with no additional advertising!   

Our job is to get the best price for our clients whatever the market conditions.  The current climate is definitely more challenging but if we’re honest, we love it because these conditions elevate the great agents from the average.  We know our way around property and have the experience, energy and a database of real buyers ready to negotiate.