Sydney auctions market hits new low

Sydney's auction clearance rates have plunged to the lowest levels since the property bust during the recession of the early 1990s. Figures from the Home Price Guide for last weekend show that only 32.3 per cent of 115 auction listings were sold. The compares with a clearance rate of 63.8 per cent from 209 properties at the same time last year. Areas with a lot of investment properties have been hit the worst such as the inner south. Analysts are divided over whether the results signal the start of a market bust or just a pause in price growth. CPM said the market is just “hitting the worst of the worst” while Home Price Guide said investors should “assume crash positions”. Residex said, however, that the market had been distorted by high prices for lower-value properties but the worst is over.