Sydney property auctions witness buyer slowdown
Australia’s rising interest rates and house prices appear to be causing a slowdown in Sydney’s recently buoyant property auction market, according to new figures.
New Residex data reveals that auction clearance rates in the city dropped by more than ten per cent last Saturday to 62.5 per cent, down from 73.5 per cent the weekend before, the Sunday Telegraph reported.
The decline follows busy auction activity in Sydney during the first three months of the year when clearance rates averaged about 80 per cent.
Commenting on the slowdown, Residex managing director John Edwards said: "It’s normal for clearance rates to slow at this time of year, but we’ve suddenly had a ten per cent fall since the last interest rise."
He also noted that Sydney’s property buyers have seen prices rise by an "astonishing" 17 per cent in the 12 months to April.
The news may interest Aussies who wish to compare home loans in search of the most affordable options. Last week, Macquarie interest rates strategist Rory Robertson told the Daily Telegraph that mortgage rates could rise close to ten per cent within 18 months if the government’s optimistic economic forecasts are fulfilled.
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