Again last weekend we saw interest in auctions waning. Clearance rates including all properties sold before and after auctions only reached the mid 60% range, although the better properties sold well and with multiple bidding. We are now back to the times where selling agents must prove competition. Most agents will agree there is usually one buyer for every property with only the very best having multiple buyers.
If we look at the breakdown of clearance rates on the weekend we can see the highest rates were in the lower end of the market. This can mean either the vendors at this level are keener to sell, or alternatively the investors are moving into this end of the market. I think it is a mixture of both. There should be some good properties at good prices for the investor that does his homework this year.
Something else to think about as an investor: Mortgage brokers are now more valuable than ever. Last year most of the bank rates were similar. The deals they offered may be slightly different but the rates were similar. As the Reserve Bank moved, so did the majors and soon after the minor banks followed. This is not the case at the moment. All the banks seem to be “jockeying for position” independently of each other and many of their rates differ depending on individual circumstances. It would be a good idea to have a mortgage broker give you a quote as they can quickly look over all the banks’ options at the same time.
If you would like a referral to a mortgage broker, please do not hesitate to call. We receive no commissions based on our recommendations. We only recommend those brokers that have done good work for our clients or our staff in the past.
Ian James