Auction clearance rates eased in south east Queensland in April after showing some signs of improvement in March, according to a leading auction house.
Jason Andrew Group reported that its clearance rate for April fell back to 48 per cent, behind the 51 per cent recorded in April last year. It was also down from the 56 per cent reported in March.
Director at Jason Andrew Group, Jason Andrew, said while some of the fall could be attributed to seasonal issues, the result was further evidence the south east Queensland property market had not experienced the recovery that was widely predicted by commentators earlier in the year.
“Looking year on year, buyer numbers were slighter higher this year, both across the month of April and in a comparison of year-to-date (YTD) results,” Mr Andrew said, whose firm handles around 20 per cent of auctions in the south east Queensland region.
“But conversely, we have also seen a real decline in the number of sellers who are highly motivated to sell, which YTD is at 53 per cent, compared to 67 per cent across the same period in 2012," he said.
Mr Andrew added that more sellers appeared to be coming to the market with price expectations above market value.
“Further, this year fewer of them are less prepared to shift their reserve on auction day to meet the market, perhaps because of what may well prove to be a false expectation that the market is on the increase,” he said.
“Meanwhile, buyers have continued to show a high level of caution and are unprepared to pay a premium over what they perceive as market value.”
There were some exceptions, including Brisbane’s inner city and the inner west, where results were significantly stronger.
“But outstanding outcomes are rare and we see no signs of any “ripple effect” occurring, despite ongoing and widespread hopes of a broader recovery,” Mr Andrew said.
“The risk that they may not have their expectations fulfilled is increasing for sellers who are waiting for prices to go up.”