Welcome to our Berry Property newsletter for May.
We hope you are enjoying the glorious autumn sunshine this week. Berry is a paradise in autumn; bathed in red and gold foliage and clear blue skies. It is certainly making for great weather for open homes and other inspections.
In this newsletter, we explain auction clearance rates and what they actually mean in relation to the current housing market. You will also find details of our upcoming Open Homes, and we share some news about a new opportunity coming on the market soon.
Belinda Zoumis & Mark Cornish
AUCTION CLEARANCE RATES AND WHAT THEY ACTUALLY MEAN TO US
Much is made of auction clearance rates in the media, however, these figures may not mean nearly as much as the media would have you believe.
There’s much more to real estate than clearance rates; interest rates, tax policies, employment growth, construction and population rates all taking part in the overall market.
Only 15% of house sales are by auction, with our two biggest cities Melbourne and Sydney taking the lead in the auction space over private treaty sales. Auctions have, at times, been a worthwhile method of sale in regional areas with traditionally longer times on the market. However, as most buyers in Berry are purchasing their last or second-to-last home, their preference for private treaty means they have more time to shop around and be confident in their purchase.
As Berry is primarily benefitted by home sales in the Sydney area, it is worth taking a wider look at the auction process.
Auction clearance rates are based on sales under the hammer on the day. These numbers do not consider homes sold before auction, homes withdrawn from auction or a negotiated sale post-auction. Tighter credit controls are causing damage to auctions, as few people can sign an unconditional contract without going through lenders hoops. A further Reserve Bank official rate cut in the future may tempt customers to borrow again.
Overall the number of auctions is down by 30% on last year, however, the number of new listings is up which actually shows a healthy housing market.
In capital cities, auction remains the most ideal way to sell a property within a relatively fixed timeframe as it puts pressure on the buyer and gives vendors a timeframe within which to secure another property.O
OPEN HOMES SATURDAY 18TH MAYView Properties
Very soon we will be launching a new home for sale off the plan at 8 Tilgman Street, Berry. Built by Cooback Designer Homes whose passion and personal service is evident in the beautiful custom homes they have built on the South Coast. They specialise in capturing the vision you have for your home and transforming your vision into your dream home.
Cooback designed and built 61A Queen Street, Berry which is currently on the market.
Thank you for signing up to our newsletter. We hope you find the information we provide valuable and we look forward to helping you find your dream Berry property!
Belinda & Mark