Sydney`s house auction market has slowed at the start of the year, with only 11 auctions planned today and only a small number scheduled in the coming weeks.
Data released this week show that most of the house auctioned in the three months to December were unsold.
During this period, the city`s auction liquidation rate was only 43.1 percent, down from 57.7 percent last year and nearly 80 percent two years ago.
The sales season last spring was also unusually calm-the number of successful house auctions was 2400 fewer than in the last months of 2017.
According to CoreLogic, auction liquidation rates vary widely in different parts of Sydney.
The strongest market was the liquidation rate of 53.3 percent at (eastern suburbs), auctions in the eastern suburbs, but only close to 35 percent in the Parramatta and the Hills regions.
Of the 101 auctions, the liquidation rate in the (Blue Mountains) and Penrith areas of Blue Mountain was 22.7 per cent, while in the Campbelltown and Camden areas, only 27.1 per cent of the 77 auctions were successful.
Loki Bartoloto (Rocky Bartolotto), Auction Services auctioneer and head of auction services, said sellers would not return to the market until the end of February.
"sellers see the market fall, so they have to adjust their expectations," he said. "there may be some activities before Australian National Day, but most of the marketing activities are only now, and auctions will have to wait a few weeks later."
Many homeowners will take a wait-and-see attitude because there is uncertainty about how their proposal to cut tax deductions could have an impact on house sales if Labour wins the next federal election, said (Nerida Conisbee), a economics home at Realestate.com.au, a real estate website.
"there are a lot of sellers who want to wait until they know where the market is going," she said.
Traditionally, few homeowners have sold real estate for auction in January, and this weekend is one of them. Sydney has fewer auctions this week than Adelaide, while Adelaide still has fewer.
Sydney`s auction today is also lower than that of New State Township, a market dominated by private deals rather than auctions.
Maximum liquidation rate (October-December)
Eastern suburbs 53.3%
North shore 47.6%
CBD and inner south 47.4%
Inner West 46.6%
Northern beaches 43.6 LOWEST CLEARANCE RATES
Minimum liquidation rate
Outer west and Blue Mountains 22.7%
Outer southwest 27.1%
The Hills 31.9%
Parramatta 32.2%
Greater Liverpool 35.5%
