Indication of Fall Back in Real Estate Market

Auction rates are not the only signs of weakness in the housing market. Home prices, interest rates and high supply of housing, these are some factors that really affects the stability of Real Estate Market. The residential Property Market have fallen by -2.05% over the past year performance across all capital cities. Different sectors of the market are showing varied performances with the most affordable suburbs and Perth has average discount rate of -6.8% and indicates that market conditions remain soft. The market has softened further with vendors more willing to negotiate on price in order to achieve a sale.

According to RP Data head of Research Tim Lawless said, “Real Estate agents and vendors are now deploying the auction process as a way to market their property to the public and attract potential buyers who they will negotiate with privately.” In Real Estate Auctions, typically, its rising clearance rates track rising home prices and give a good indication of overall market demand for housing. Buyers increased uncertainty about the health of the economy and to achieve this, buyers struggle with low affordability and expected about the future interest rates changed.