Australian auction clearance rates fall to a six-year low
According to Cotality, Australia's auction clearance rates have fallen to their lowest level since the early days of the Covid pandemic. ABC reports sellers are facing disappointing outcomes, with analysts forecasting « a further loss of momentum » in the housing market.
Australian property-data provider Cotality says national weekly auction clearance rates have fallen to their lowest level since the early days of the Covid pandemic. According to ABC News, rates across Sydney, Melbourne and Brisbane all came in below their six-year average.
Cotality's chief economist Tim Lawless said the gap between buyer and seller price expectations is widening and that uncertainty over the interest-rate outlook continues to weigh on demand. The Reserve Bank of Australia (RBA) is holding monetary policy tight, household debt is at record levels, and new home loan applications fell month-on-month.
Lawless said he expected the market « to see a further loss of momentum in coming weeks », warning that listing periods will lengthen and sellers will have to lower price expectations. Analysts at Westpac and ANZ wrote that the RBA is moving closer to a possible rate cut by year-end, but that no rapid easing cycle is on the table.
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