With news that Brisbane’s auction clearance rate has halved over recent weeks, property agents remain confident Logan can weather the storm.
But that hasn’t stopped early nerves from creeping into the market among home owners who’ve taken the auction route when selling their houses.
A July 2022 Auction Report from Domain Research House found Brisbane’s clearance rate had fallen below 40% for the first time since July 2020, recording the biggest monthly fall across all capital cities.
Cedar Grove resident, Tegan Mills said her home is about to go to auction and she is worried about the news.
“We are hoping to go to auction in the next month or so, but now we are worried that we won’t get the price we want for our home,” she said.
“If it doesn’t work out, we may have to change our approach, hopefully we can get what we want or more for it.”
Despite the news, Logan real estate experts remain positive the Logan market will stay strong.
Neil Giles from Browns Plains Real Estate said Logan’s clearance rate shouldn’t dip as much as Brisbane.
“Most houses in Logan are private treaty with set prices on properties, so buyers do have a better idea of where our prices sit,” he said.
“Logan has always been a very affordable market, for investment and purchases to live in compared to other that of other cities, it’s a good area to buy in.
“We don’t have the increased growth here like they do in Brisbane, so I believe the clearance rate won’t dip as much and I think we will stay pretty consistent over the next year or so.”
According to the Real Estate Institute of Queensland, Brisbane’s sales market in general has slowed, but they expect auctions to become more prevalent in many areas of Queensland.
“Brisbane’s auction clearance rates have historically lagged behind Sydney and Melbourne where auctions are far more prevalent,” REIQ CEO Antonia Mercorella said.
“Over the past two years however, we have seen more and more properties being sold under the hammer in Brisbane due to strong buyer demand, high consumer confidence, low interest rates, and lots of interstate buyers who are cashed up and accustomed to auctions.
“This has resulted in Queenslanders being more confident with auctions and more familiar with the process.
“Although we have seen the pace of the sales market slowing down, we expect to see auctions remaining more prevalent in Queensland than pre-Covid.”
Mr Giles said even with the sales market slowing down, there is still money to be had in selling your property.
“If you bought your home two or three months ago, yes you will struggle to sell today because it won’t have gone up in price, but if you bought it two or more years ago you will still make a good profit – you’ll be about $80,000 to $150,000 better off,” he said.
“The positive in the market at the moment is that property was selling and being snapped up very quick earlier this year and competition was very stiff, but now it has slowed down there is much more property available on the market.”
