When you’re looking to buy a home, there are so many items on the wish list. Only the wealthiest among us ever expect every one of them to be fulfilled but, no matter what your budget, it is still a lot of money, and you want a home that suits your requirements.
The key indicator of the state of the property market is the auction clearance rates in capital cities. They show the number, or percentage, of properties sold at auction for the week. If the clearance rate is high, generally considered above 75 per cent, the market is considered hot. If the rate is low, around 60 per cent or less, it indicates low auction interest and declining house prices.
At the moment, the clearance rate is low, and while that may appear to be a good thing for buyers, it is not necessarily so. During times of low clearance rates, fewer people are inclined to list their properties for sale and there is a limited choice of homes available.
According to the property analytics company, CoreLogic, the clearance rate in Sydney for the week ending 14 April was 62.9 per cent with 927 auctions held; in Melbourne, the rate was 54.9 per cent for 939 auctions.
In Sydney, the number of properties listed for this period was down 18.8 per cent compared with the week before Easter in 2018, and Melbourne had 22.7 per cent fewer homes listed.
All this means that there is less choice for buyers and a higher likelihood of having to compromise on important items on the wish list. The alternative to chasing your ideal property through the fickle property market may be to look at house and land options. Partnering with land developers to create great-value packages, building companies offer a high level of customisation and a variety of facade, finish, and floorplan choices. It is tempting to know that you can move in and have no renovating or painting to do, and have the peace of mind from a 7-year building guarantee on your new home.
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