2008 property slump could continue

Auction clearance rates declined throughout 2008 after a property boom in 2007 that saw 82 per cent of properties put up for auction sell under the hammer. In the last quarter of calendar year 2008 auction clearances averaged 56 per cent and perhaps lower after unreported failed results are factored in. Some agents are predicting the slump to continue well into 2009. However falling interest rates and higher subsidies for first home buyers are restoring affordability to property markets and creating buying opportunities say analysts. In Melbourne the clearance rate on Saturday was affected by bad weather and too much stock. Fifty seven per cent of 608 properties sold under the hammer with 83 auctions results still unreported. In Sydney, 47 per cent of 425 properties sold on the day with 116 results still unreported. Twenty three per cent of 35 auctions in Adelaide were successful and 19 per cent of 94 Brisbane auctions managed a sale.

Source: The Age/ Australian Property Monitors