Australia markets closed
  • ALL ORDS

    7,543.60
    +7.50 (+0.10%)
     
  • ASX 200

    7,241.20
    +16.00 (+0.22%)
     
  • AUD/USD

    0.7054
    -0.0040 (-0.57%)
     
  • OIL

    68.80
    +2.30 (+3.46%)
     
  • GOLD

    1,769.70
    +7.00 (+0.40%)
     
  • BTC-AUD

    80,667.20
    -203.88 (-0.25%)
     
  • CMC Crypto 200

    1,451.35
    +12.46 (+0.87%)
     
  • AUD/EUR

    0.6240
    -0.0034 (-0.54%)
     
  • AUD/NZD

    1.0405
    +0.0006 (+0.05%)
     
  • NZX 50

    12,676.50
    +6.26 (+0.05%)
     
  • NASDAQ

    15,990.76
    +113.04 (+0.71%)
     
  • FTSE

    7,159.77
    +30.56 (+0.43%)
     
  • Dow Jones

    34,639.79
    +617.75 (+1.82%)
     
  • DAX

    15,340.24
    +77.13 (+0.51%)
     
  • Hang Seng

    23,766.69
    -22.24 (-0.09%)
     
  • NIKKEI 225

    28,029.57
    +276.20 (+1.00%)
     

Why Sydney houses aren’t selling

Why Sydney houses aren’t selling

Clearance rates in the Sydney auction market have dropped below 60 per cent for the first time in three years.

With 1011 auctions scheduled over the weekend, Sydney’s clearance rate dropped to 59.2 per cent, down from 64.4 per cent the weekend before, according to Domain Group.

In some cases, sellers didn’t have any buyers turn up to the auction at all.

Also read: Sydney placed on global housing bubble risk list

Listing agent Matthew Hayson of Cobden & Hayson said there had been a “loss of confidence” in the market, with buyers unwilling to commit to purchasing until they themselves had sold.

“Two months ago they would have said, ‘Stuff it. I’ll buy this and then sell mine’,” he said.

“That’s not happening anymore… open home attendees have halved in the past two months.”

Banks decisions to raise interest rates for investors, followed up by higher interest rates for owner-occupiers over the last three weeks, has dented market confidence.

Buyers are now taking a wait-and-see approach to home buying in fear of potential further rate rises.

Fragile buyer sentiment was also likely knocked by the Reserve Bank’s decision to leave official interest rates on hold at 2.0 per cent for the sixth consecutive month in its November rates announcement, despite signs of a weakening economy.

Also read: Where are Chinese investors buying property in Australia?

The fall in confidence is now also affecting sellers, with 112 of the 1011 auctions scheduled on Saturday, withdrawn.

“Buyer and seller confidence has been bruised by unpredictably higher mortgage interest rates, but this is likely to have a relatively short-term effect on the local market,” said Andrew Wilson, senior economist at Domain Group.

“Regardless, the glory days for homeowners of booming prices recorded over the past few years are a fading memory, with price growth likely to be much flatter for the foreseeable future.”

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting