Vendors buy the Story – April 2014 Jason Andrew Group Monthly Report

The overall national auction clearance rate rose from 52% in March to 54% in April, with a healthy level of buyer activity failing to translate to high sale rates in many market segments, according to the latest data from the Jason Andrew Group.

Director Jason Andrew said that many vendors are continuing to hold on to above market price expectations on auction day, with the average shift from the original reserve price to achieve a sale under the hammer in April at just under 3%.

“There is still plenty of positivity in the media over the property market which is leading vendors in some cases to be overly optimistic, although cracks are already appearing,” Andrew said.

“The Easter and Anzac Day breaks slowed auction volumes tremendously last month as vendors avoided the holiday periods.”

“But even with the limited volumes, analysts are already calling the Sydney boom over, before many other Australian markets failed to boom at all.”

“With significantly more properties up for sale in recent months, vendors are increasingly competing for buyers who are meanwhile becoming less enthusiastic in the face of concerns over the health of the economy.”

“With the looming Federal Budget amplifying those concerns, vendors on the market currently need to be brutally realistic with their price expectations in order to attract the maximum number of buyers competing for their property.”

“This is the best way to achieve a good outcome – it’s highly unlikely in the current environment that simply putting a high price tag on a signboard work.”

To view April’s data please click below:

Monthly, April 2014.pdf