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Are auctions working for Geelong?

If you read or see any media articles about Geelong's current real estate situation you could think that lower clearance rates at auctions are reducing house values in Geelong.

News.com.au recently quoted CoreLogic saying that clearance rates are currently the following; 50% two weekends ago compared to 93% last year at the same time last year. And you'd be forgiven thinking that this information coupled with talk of less properties on the market means that exactly that...however...the truth is a little different from all doom and gloom.

We can't argue with the facts; auction clearance rates are dropping but buyers are negotiating after auction and properties are selling. Granted, prices aren't what they were last year but as we can see from individual property valuations, property valuations are steady, so although an sale price isn't as high as last year, property value is holding and is now closer to sale prices.

A recent RealEstate.com.au article also points out that 'there are less properties going to auction this year however the number of properties overall on the market has increased'. This means that waiting or other ways of selling are becoming favoured.

This distinct shift from sales at auction to buyers negotiating after auction and possibly even the increase to the length of time taking to sell might be influenced by buyers having to wait for an auction date to see what happens before they make an offer.

That article also suggests that finance is getting harder to get but let's face it after some of the stories coming out of the Royal Commission, some things needed to change. As for whether finance is getting harder to get; we need to consider what things might make finance 'harder'. I'd suggest that it's not harder but there will be more accountability; from the big banks & other lenders and also for us all as borrowers. Next week I'll talk about how you can make your road to a new loan, or refinancing an existing one, as seamless as possible.

As always, call the office if you have any question, or book an appointment if you're ready to find out what you need to get in order before applying for a loan.

Articles here and here.