Recent auction activity indicates the level of demand remains strong
- Written by: Tim McKibbin
Recent auction activity indicates the level of demand remains strong and properties priced in accordance with the current conditions are receiving plenty of buyer interest.
Volumes have been gently increasing yet even so, clearance rates remain above 70%. The reasons people are selling are many and varied.
Whether it’s investors selling as the attractiveness of residential property as an investment is diminished, or people selling due to mortgage stress or before this stress becomes a reality, some of the recent activity in the market is being driven by consumers in difficult circumstances.
Unfortunately, the number of downsizers listing their properties remains constrained by the huge impost of stamp duty, which for many rules out a move to a more suitable home.
All the while, and even with the potential for further rate rises, prices continue to creep upwards.
Spring will soon be upon us, so it will be interesting to see if the current price trajectory will be maintained with a further increase in listings.
Presumably, the systemic shortage of housing and the stalled supply response, despite the widespread recognition of the urgent need to build more homes, will continue to be the key drivers in keeping prices buoyant.
