With more questions hanging over the economy and global markets this week than last, the real estate industry holds little hope for an increase in buyers this weekend.
Even before the dramatic volatility on the sharemarkets seen this week, auction clearance rates in Melbourne and Sydney had hovered around 50 per cent this year, from highs of 80 per cent in 2010, while home prices had declined. After the latest sharemarket wobbles, investors have now begun to price in interest rate cuts, giving buyers more reason to pause before taking the plunge.
‘‘Buyers are looking for a lead,’’ said Melbourne-based Ray White Port Phillip real estate agent Michael Paproth. ‘‘Are property prices going up? Are they going down? Are they stagnant? Really there is so much uncertainty with conflicting stories daily.’’