Shoppers are also mindful of their rising cost of living, upcoming school fees, higher energy bills and planning for Christmas spending, he said. He also pointed to RBA research showing a drop in the household savings rate, which could give households with less margin a reason to wait rather than go ahead and buy a home.
In the less auction-focused Brisbane market, the settlement rate rose to 38.8% but remained below 40% for the second consecutive month. Adelaide’s property market has been stronger than some of the more expensive cities with its settlement rate reaching 63.1 per cent.
The number of auctions held in the capitals combined has dropped for four months in a row, and winter is typically a quiet time for real estate, but it could indicate homeowners are less confident about putting their homes up for sale.
In Sydney, AuctionWorks auction chief Jesse Davidson attributed the slight improvement in the settlement rate to a change in sentiment from suppliers as they adjust their expectations and are more willing to make a deal rather than wait for High prices.
“The massive sale that was made in the neighbor’s house in November of last year is not taking place [now],” he said. “We are getting more realistic owners. In any cycle, up or down, the buyer is ahead of the seller.”
For example, last year a homeowner might have been willing to accept $2 million, but a buyer who saw prices go up might have paid $2.25 million to insure the property, he said. As prices drop, a homeowner may want $2.25 million, but a buyer may only be willing to pay $2 million.
He said people looking to transact have started to get more comfortable with the idea of interest rate hikes over the past month, leading to a small increase in the number of bidders per auction, but Tuesday’s statement could change. it’s.
The biggest demand is for renovated homes, while units in areas with oversupply attracted less interest, he said.
He expects removal rates this spring to be flat or improve a bit: “I think it’s going to be relatively good,” he said.
In Melbourne, Brad Teal, director of Brad Teal Woodards, is watching properties roll by and move on to post-auction negotiations as buyers hesitate to raise their hands.
“We are seeing that buyers are very cautious,” he said. “They will suggest that they are going to attend and bid, and they don’t attend, or if they do attend, they are reluctant to bid.”
Vendors, on the other hand, are primarily in this market to sell, not to test the market, he said.
He said prices are “doing well,” and because there are a limited number of homes for sale, that means there’s less downward pressure on prices than there otherwise might be.
“If you have a genuine buyer and a genuine seller, 99 percent of the time we will be able to close a deal.”