The already weakened property market has taken another hit with auction clearance rates dropping into the 50s in key capital cities, as buyers continue to hold back due to rising interest rates.
The result comes as new research figures demonstrate Australian property owners are coming under mortgage stress, with 75% saying they will be at least “a little” concerned if interest rates rise another 100 basis points over the next year, and another 5% saying they will be forced to sell.
This week’s results show Melbourne’s clearance rate at 61%, according to the Real Estate Institute of Victoria – a slight increase from last week’s 59%, but still quite low. SQM Research director Louis Christopher says these results are indicative of a market in pain.
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