An increase in buyer activity did little to push up overall auction clearance rates in south east Queensland last week, an independent auctioneer reported.
According to Jason Andrew Group (JA), the overall auction clearance rate fell from 50 per cent to 38 per cent, despite an average of 1.24 registered buyers per auction last week, higher than the previous week’s result of 1.17.
“Additionally, the percentage of those registered actually making a bid also rose to 62%, up from 48 per centin the previous week,” the company reported.
“Overall, the year to date (YTD) clearance rate is currently sitting at 47.81 per cent compared to the 2011 YTD clearance rate of 30.17 per cent.”
Director Jason Andrew said it appeared the clearance rate had slowed last week due to the forthcoming changes to stamp duty on July 1.
On this date, all home buyers will be eligible for the transfer duty home concession, assuming they meet certain conditions including that they are individuals, and the property must be occupied as the principal place of residence within one year of transfer, and for at least one year from the occupants move in.
“Vendors remained willing to meet the market, with the owners of properties that sold under the hammer shifting their reserve prices by 5.7 per cent on auction day to achieve a sale, up from 4.9 per cent the previous week,” Mr Andrew said.
“Anecdotally, it appears buyers are waiting for the stamp duty changes due to take effect on July 1 in the hope they will end up ahead on the transaction. In the last few days, we have even seen some auctions moved from June 30 to July 1 specifically for this reason.”
“Ironically, the opposite may well be true,” he continued.”
If buyers hold back now, competition for properties will increase as of July 1, and any saving may well be eaten up by an increased purchase price. The current slowdown may actually present better opportunities for savings.”