On the 3rd February the Reserve Bank of Australia increased the cash rate to 3.85 per cent due to a rise in inflation. Last week the impact of that interest rate rise and anticipated future rises was reflected in Melbourne’s auction clearance rates.
There were 164 listings pulled from auction last week, and clearance rates reached a mediocre 68.6 per cent according to PropTrack data.
While the auction market faltered, private sales were strong, suggesting agents and sellers are losing confidence in the auction market as buyers are wary of the potential for another interest rate rise. The RBA are due to meet again on the 16th-17th March, at which point the industry anticipates another rate rise, although it is never a certainty.
In the meantime, Melbourne’s private property sales continue to do well.
Chat to us about how a property advocate can help you buy in the current market: Buyers Advocacy Service.