House sale volumes tank

Monday 16 March 2009

Article by Mozo

First-home buyers itching to take advantage of interest rate cuts from the Reserve Bank may have a hard time bidding on the keys to their new property.

New figures show that while the number of homes being sold off at auction is continuing to improve – suggesting that first-home buyers and other groups are growing more keen on property investment – the number of homes actually going under the hammer is dwindling.

Real Estate Institute of Victoria head Enzo Raimondo told the Australian that there has been a drop-off in the number of homes listed at auction across the board, with the higher end drying up quickly.

"While we’re seeing a lot of increased activity in the lower end of the market, the median to higher end where most of the action usually takes place has slowed down to a whimper," he told the paper.

Last month, the Australian reported that 500 properties have sold at auction this year in Sydney, Melbourne, Adelaide and Brisbane, compared with more than 1800 at the same point a year ago.

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