While auction buyer numbers and activity remained constant from June to July, vendors across south east Queensland became less motivated according to new research.
The latest data from the Jason Andrew Group showed a drop in the overall auction clearance rate from 48 per cent in June to 42 per cent in July.
Director Jason Andrew said ongoing media speculation about a property market recovery is once again causing many vendors to hold firm on above-market price expectations.
“All year we’ve seen a disparity between what vendors are prepared to accept and what the market is willing to pay,” he said.
“Much of this has been bred by media optimism about future price growth, which has failed to come to fruition.
“By the end of June, it had appeared vendors were becoming more willing to moderate their price perceptions to a more realistic level, with the average shift in reserve price on auction day to achieve a sale rising to 6.23 per cent, up from just three per cent in May."
But according to Mr Andrew, the percentage fell back to 5.34 per cent in July.
“This was in line with a drop in the percentage of vendors who described themselves as highly motivated, down from 52 per cent in June to 44 per cent in July,” he said.
“Interestingly, the average number of inspections, bidder registrations and active bidding percentage remained level between June and July.
“Clearly, the divide between buyer and seller expectations on price is once again becoming wider, and despite a healthy level of buyer activity, the number of transactions has fallen.
“For those vendors currently on the market, selling decisions should take into account the influx of new stock to market expected in spring and the added competition for buyers that is likely to be just around the corner.”