Agents have been forced to rethink their marketing strategies after auction clearance rates slumped this week, as the gap between buyer bids and seller expectations continues to widen.
Auction clearance rates took a sharp hit this week as rising interest rates, global instability and weakening economic confidence pushed buyers to the sidelines.
According to REA data for the week ending 29 March, Queensland saw 472 auctions scheduled homes scheduled for auction over the weekend, with a clearance rate of just 44 per cent.
Meanwhile, NSW observed a clearance rate of 47 percent, 29 percent in Western Australia and 50 percent in the ACT.
Plum Property Brisbane West sales agent, Lewis Jones, advised agents to leverage their databases, be transparent with pricing, and strategically use different platforms for sales campaigns, after data showed a slump in Queensland’s clearance rate.
Jones said a quiet buyers’ market meant agents need to play a pivotal role in building their confidence, including being more transparent with pricing.
“Just being honest with them and actually taking the additional time to talk through the process with them,” he told REB.
Jones explained that a quieter market may require agents to be more proactive with their current database of interested buyers, putting in the effort to call them and discuss the property.
He said this enabled the process to be more client-focused than simply putting the listing online, and hoping for the best.
“It’s talking about what the opportunity lies in front of them, rather than just putting them on REA and expecting people to turn up.”
To increase foot traffic in a property and create a sense of urgency, Jones advised agents to talk to buyers who have inspected similar homes that haven’t met the requirements.
“[They should] pull buyers from other suburbs that are close by, that might not have considered the neighbouring pockets,” he said.
“My job as an agent is to have my open homes busy and full of people, which in itself will create a sense of demand and a fear of missing out.”
According to Jones, effective presentation starts by creating a clean, neutral environment for buyers to be able to picture themselves living there.
He said essential considerations were the street appeal of the house, manicuring the gardens, and washing or painting the house if required.
“Whether you do professional staging or not, it doesn't really matter if the people living there are obviously clean and tidy themselves, and it presents well internally.”
When advertising online, Jones advised agents to put in the extra time and funds to advertise on social media, allowing them to reach a wider audience than with REA and Domain.
“To find a house in Taringa, for example, you need to search ‘Taringa four-bed, two-bath, two-car price range for the home to pop up,” he said.
“But there could be people looking in other suburbs that would consider the house because it suits their needs, but aren't necessarily clicking on Taringa itself on REA.”
Streamline Property Buyers founder, Melinda Jennison, said the softer clearance rate reflected a more cautious buyer mindset, with a combination of factors making people more conservative.
“Buyers are reacting to negative headlines around international uncertainty, higher living costs linked to oil price pressures, rising interest rates, and proposed policy changes for property investors around negative gearing and capital gains tax,” she told REB.
She said that, from what her team observed at Brisbane auctions over the weekend, several properties that passed in still had multiple registered bidders
“The issue was that bidding often did not reach the seller’s price expectations. That points to a widening gap between buyers and sellers, rather than a lack of interest altogether,” she concluded.
