00:00Auction clearance rates are dropping and people are concerned, but do they need to be?
00:04The auction clearance rate is the percentage of houses which sell each week at auction
00:09and it can be a key indicator of what's going on in the property market.
00:12According to Cotality, the auction clearance rate across Australia's capitals has been
00:17less than 50% for the past six weeks.
00:19Now, the market does tend to slow during winter, but even compared to this time last year,
00:24that's a pretty significant drop.
00:25So what's going on?
00:26Well, according to many real estate agents, recent tax reform intended to push property
00:31investors out of the market has been successful, but with median house prices still over a million
00:36dollars in the cities and over 700,000 in the regions, many first home buyers are still struggling
00:42to finance a mortgage, leaving fewer bidders at auctions.
Comments