Property market at a standstill as buyers wait for more rate cuts

The property market is standing at a halt despite three consecutive interest rate cuts, with the capital cities either recording marginal increases in clearance rates or no gains at all.

The property market is standing at a halt despite three consecutive interest rate cuts, with the capital cities either recording marginal increases in clearance rates or no gains at all.

After a disappointing result for Sydney last weekend at 47%, the clearance rate for the city rose to 49% clearance rate. A total of 239 properties were sold totalling $81.9 million.

Melbourne rates have stayed at 54% for two weeks now, with 398 properties selling at a total of $225.1 million.

The Real Estate Institute of Victoria’s Enzo Raimondo says sentiment in the property market shows no sign of change.

Meanwhile, Adelaide rates were steady at 42% with just 19 properties going under the hammer. Brisbane has enjoyed the highest rise of the capitals, jumping from last week’s 26% to 34%.

John McGrath, chief of Sydney-based John McGrath Real Estate, says the lower and mid-sectors of the property market have responded well to rate cuts, but the top end is taking longer to come around.

“At the moment we are finding properties under $1 million are selling very well in Sydney, but when you go above a million the market has not responded as quickly. The cuts there become less relevant.

“I think upper end buyers are looking for more relief. The expectation within the buying community is there will be some more cuts, and so there will be people hanging out for those, but I don’t expect it to turn the curve until we see more reductions in rates.”

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