Melbourne weekend residential liquidation rate plummeted 20% in 2018 (real estate website Realestate)
Last year, the liquidation rate of Melbourne`s overall residential auction fell 20 percent over the weekend, with banks slowing home loans blamed for one of the reasons for the market correction. As lenders step up due diligence on borrowers, Melbourne buyers are at risk of extending their home loan approvals.
In the fourth quarter of 2018, Melbourne`s weekend residential liquidation rate was only 45.8 percent, down from 68.1 percent a year earlier, according to the latest data from CoreLogic, a property research firm, according to Realestate.
White (Geoff White), head of CoreLogic Australia, said that according to a number of real estate agents, a four-week listing campaign was insufficient for buyers to obtain pre-approval for loans, forcing buyers to leave.
Others are afraid that banks will change their minds and dare not bid at unconditional auctions.
Mitchell (Susan Mitchell), chief executive of Mortgage Choice, a mortgage broker, said it traditionally took five to 10 working days to assess home loans. However, due to financial services surveys and prudential measures in recent years, the assessment time has risen. Mitchell agreed that this would affect the house auction.
Mitchell also warned that determining the cost of living at home is one of the key reasons for the prolonged approval of housing loans.
Melbourne`s weekend residential auction market is not all hazy, 71 urban auctions remain closed at more than 50%. Among the 24 properties that Windsor (Windsor), auctioned in the fourth quarter, 17 were successfully traded.
(photo of property website Realestate)
Melbourne weekend residential liquidation rate of the strongest 10 major urban areas:
Windsor (Windsor)-71.4%
Blake Bennan (Blackburn South)-70%
Fitzroy (Fitzroy)-67.6%
Ma Erwen (Malvern)-66.7%
Hawthorne (Hawthorn)-64%
Kanaki (Carnegie)-63.2%
Mir Park (Mill Park)-62.5%
Monte-Moren (Montmorency)-62.5%
Gleneilles (Glen Iris)-60.8%
Marvin Dong (Malvern East)-60.8%
Source: < CoreLogic Quarterly report on the Real Estate auction Market
