Lacklustre auction clearance results in Sydney and Melbourne suggest the winter downturn has well and truly arrived.
According to the latest data from Australian Property Monitors, the auction clearance rate in Sydney and Melbourne was 58.7 per cent and 58.8 per cent respectively.
This auction activity is a far cry from the 70 per cent plus highs achieved less than two years ago.
“For the fifth weekend in a row demand remained subdued at auctions in Melbourne with a clearance rate in the 50's being recorded,” Real Estate Institute of Victoria chief executive Enzo Raimondo said.
“The clearance rate is 59 per cent from the 829 auctions reported this weekend. This weekend last year saw 990 auctions held and a clearance rate of 72 per cent achieved.”
But while demand for houses has dropped considerably, it seems a lot of people are still keen to sell, with more than 840 houses put under the hammer in Melbourne this weekend.
And, according to the Real Estate Institute of Victoria, another 785 properties are expected to go to auction next weekend.