Softer property market sets up autumn house hunters
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The Australian property market is showing signs of cooling as auction clearance rates continue their downward trend.
According to CoreLogic's latest data, preliminary clearance rates have dipped below 70% for the second consecutive week, settling at 69.6% across the combined capitals.
While seasonal factors and weather events partially explain the decline (Melbourne's Labour Day weekend and Brisbane's ex-Tropical Cyclone Alfred), the broader trend suggests a gradual easing in the previously white-hot auction market.
For prospective home buyers waiting on the sidelines, this softening, coupled with the recent modest reductions in home loan interest rates, presents a more favourable buying environment than we've seen in quite some time.
The cooling auction market means less intense competition at properties, potentially fewer bidding wars, and more room for negotiation.
Sydney's clearance rate has fallen to its lowest level in five weeks (70.7%), while Adelaide recorded its lowest preliminary clearance rate (61.3%) since November 2022.
Though this might concern sellers, it's important to remember that property markets are cyclical. The current softening creates a window of opportunity for buyers who have been priced out or intimidated by the competitive frenzy of recent years.
With slightly lower borrowing costs and decreased auction competition, those looking to enter the market or upgrade their homes may find conditions better than they've been in years.
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