Australian property investors looking to sell their houses and units should think twice about doing so through auctions, one commentator has advised.
RP Data results indicate that auctions are increasing in popularity, with around 45,000 properties put up for sale in this way since April.
However, clearance rates have fallen from around 75 per cent in April to 52 per cent in November, API Magazine reports.
Researcher Cameron Kusher said that the poor clearance rates are pushing up competition between vendors, making it harder to sell.
When asked why so many people are still choosing to sell at auction if this is the case, Mr Kusher said: "Auctions generally achieve much greater exposure than a private treaty sale, because vendors are often willing to spend more money on advertising."
He went on to say that the most expensive sales each week have usually been made at auction.
Andrew Wilson, senior economist for the Fairfax Media-owned Australian Property Monitors, recently suggested in a piece for The Age that Australia's current property market is presenting investors with the opportunity to buy houses and units at bargain prices.
Posted by Steve Douglas
