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Another sign the property market is falling

·Personal Finance Editor
·2-min read
An auctioneer holds the hammer in midst of an action, potential buys stand around at an auction and the aerial view of Australian property.
The property market downturn is in full swing as buyers and sellers move away from auctions. (Source: Getty)

The downturn in the Aussie property market is getting into full swing with the amount of homes going to auction falling.

New research from CoreLogic found just 1,471 homes were auctioned across the nation’s capitals over the weekend, the quietest auction week since mid-July - when most states were celebrating the Queen's Birthday long weekend.

Falling for the first time in three weeks, the number of auctions held was down 23.1 per cent from the 1,913 auctions held last week, and 8.4 per cent below the number held this time last year (1,606).

On top of the decline in homes going to auction, there has also been a decline in those auctions being successful, compared to this time last year.

The amount of successful sales this week was 59.5 per cent, a significant fall from 74 per cent this time last year.

Sydney recorded its quietest auction week since late January, with just 476 homes put up for auction across the city.

The previous week saw 624 homes go under the hammer, while 564 auctions were held this time last year.

Not a single auction was held in Tasmania at all.

Property market declining

The pressure of interest rate hikes has spooked potential home buyers, as mortgage repayments start to dent household budgets.

The Reserve Bank of Australia (RBA) has hiked the official cash rate every month since May.

The Big Four banks have passed on each rate hike in full, with borrowers feeling the pain.

For someone with a $500,000 debt at the start of May, with 25 years remaining on their loan, the total increase across the four hikes would be $472 more every month, according to data from RateCity.com.au.

That’s like buying a new washing machine, every single month.

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