Rate cut can’t spark auctions

Fear of global economic turmoil may be still affecting the real estate market, with the biggest official interest rate drop in over a decade doing nothing to help auction rates.

Fear of global economic turmoil may be still affecting the real estate market, with the biggest official interest rate drop in over a decade doing nothing to help auction rates.

Sydney has suffered a second consecutive drop after steady growth, slipping from 58% to 55% as 150 properties went under the hammer totalling more than $94 million.

Melbourne basked in a third weekend of 20-plus degree heat, but it did nothing to stir sales. The city saw auction rates fall from 68% to 63%, with 356 properties sold totalling $192.81 million.

Brisbane slipped back from last week’s improvements, from 30% to 25% with sales worth $4.8 million. Adelaide was the only city to see a lift in the clearance rate, with the rate jumping a huge 52 percentage points to 65% with 11 properties sold.

But RP Data research director Tim Lawless says the property market will take time to produce any return of confidence.

“It’s a bit hard to tell at the moment,” Lawless says. “Property is so much different than other markets because it takes a little bit of time for us to see any evidence of any return of activity.

“What I think is that more people who are looking more to buy are sniffing around auctions and realestate.com.au, but are not quite ready to buy yet.

“Prospective buyers are doing their due diligence, but they know they have their time on their hands. Confidence is what it’s all about. When consumer confidence rises, so will property confidence.”