Auction clearance rates fell nationwide last week, including in Melbourne where they dropped to just 59 per cent. Experts suggest economic factors such as the cost of living, skyrocketing petrol prices, and increasing interest rates are influencing buyer confidence, creating a shift to a more balanced market.
The fall in Melbourne’s clearance rates pertains mostly to homes in the middle and top end of the market, as well as overpriced properties and properties in need of renovation. Melbourne homes priced in first home buyer market and under $1M are still performing quite well at auction, but properties priced at where the market was three or four months ago are not selling under auction conditions.
Adding to buyer conservatism is the current uncertainty around Melbourne’s building industry and the high cost of renovating, so buyers are bidding on homes that are move-in ready and realistically priced.
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By Wendy Chamberlain
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