Australia Today: figures show auction clearance rates are crashing

New figures show auction clearance rates are crashing. There are fewer bidders with interest rate rises, pulling the handbrake on the property market. 1800 square meters, 6 km from Brisbane. CBD is orderly. The asking price, $1.5 million, is more than 3000 above the median price the property passed in days of last year.

Where we had 20 or 30 people registered for an auction is definitely gone. A similar scenario in Virginia. A small turnout for this Queenslander on Sandgate Road, which agents say is becoming a common occurrence.

There are a lot of people researching the market and especially with banks and the way they are reassessing people's finance applications. 221 auctions were scheduled across Brisbane in October. 109 of those were passed in, with the clearance rate sitting at 42% compared to 63% this time last year.

I think higher interest rates are the key thing that's affecting the housing market at the moment. In suburbs like Albany Creek, Bald Hills, Griffin, Bean, Lee, and Yamanto, you now need a salary of more than $100,000 to purchase a home.

Experts say buyers are no longer rushing to get into the property market. At many auctions across Brisbane, there are a few registered bidders, with many struggling to get finances approved quickly.

Someone who could borrow around $500,000 in November last year is looking to be able to borrow about $390,000 now. Although borrowing powers have decreased, prices in. Brisbane is still up seven and a half percent over the year and more than 40% since the start of the Pandemic, with no sign yet of slowing down.