Strong Auction Clearance Rates Again
The last weekend before Spring saw very strong auction activity again, with a preliminary auction clearance rate of 77% during the week ending August 28. There was also an increase of auctions held this week, with 2,113 registered auctions around the country, compared to 1,795 auctions last week (according to CoreLogic RP Data). However, this is down from 2,654 auctions held in the same week last year (2015).
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How did my city go?
Based on the preliminary data, here is how our 5 largest capital cities performed:
Source: CoreLogic RP Data
Key things to note about this weeks results include:
- Sydney & Melbourne continue to lead the way with strongest clearance rates in the country
- Adelaide’s clearance rate has also been rising, contributin to the overall strong national clearance rate
- In Queensland, the clearance rate of the Gold Coast (54%) outperformed Brisbane (47%)
FHBA co-founder Taj Singh said there has been some good opportunities in the Brisbane market for first home buyers. “For some time now the clearance rate in Brisbane has been around 50%. With around 40 to 50 or so Brisbane homes passed in each week, first home buyers should be on the look out for good buying opportunities”.
What to do when a property passes in at auction
If a property passes in at auction and you are still interested in buying it, it is time to talk with the agent / vendor. The game isn’t over so it is wise to keep to your strengths & strategies. There could still be other people competing to buy the property and vendors will still want the strongest price possible.
Metropole Property Strategists’ Bryce Yardney told Domain what he recommends interested buyers do when a property passes in. Mr Yardney recommends quickly finding out what the vendor’s reserve is and then asking; “I understand that’s the price the vendor was hoping to pay for before the auction, but now what is the lowest price they will sell for?”.
- To learn more about Mr Yardney’s tips please read his interview in Domain by clicking here.
- To learn more auction tips for first home buyers please click here.
FHBA increases new home options available to first home buyers
Are you looking for a new home rather then an established home? On Saturday we announced that we have increased the amount of new homes available to first home buyers through FHBA New Homes. Fellow FHBA co-founder Daniel Cohen said “whether you are looking for a house & land package, a new townhouse, new terrace, or a new apartment, then you really have come to the right place. You will be spoilt for choice and have access to complimentary expert assistance throughout the process to help your first home buying experience a lot easier”.
Have you considered staying out of the market to save longer?
Are you finding this market is to hard to get the slice of the Great Australian Dream that you want? FHBA co-founder Daniel Cohen recently spoke to Domain about the benefits of staying out of the market and saving longer. Learn more about the benefits of saving for a deposit longer here in Mr Cohen’s Domain interview.
This week there was both good news and bad news in the home loan market for first home buyers:
- Australia’s biggest bank, CBA, announced that they are reducing the discount they provide to first home buyers by up to 15 basis points (due to funding pressure costs).
- Heritage Bank have announced a new family guarantee product to assist first home buyers enter the property market sooner & potentially save thousands of dollars on there home loan. In Heritage Bank’s press release they said “Heritage Family Guarantee works by splitting the total [borrowing] amount across two loans – one loan secured by the property being purchased, and the second one partially secured by the parents’ property as guarantors. This structure helps borrowers avoid the need for Lenders Mortgage Insurance, thus making the loan more affordable, and also helps limit the amount that the parents are guarantors for, which helps their peace of mind”.
FHBA co-founder Taj Singh said that this is just the latest evidence that smaller lenders are doing more to support first home buyer s than the bigger lenders right now. “It really is a good idea for a first time borrower to consider borrowing from a smaller lender. They are offering some great deals for first home buyers right now”.
In regards to family guarantees, you should ask your Mortgage Broker more information about how this could work for you.
Other First Home Buyer News
It was a big week in news affecting first home buyers. Here are the other top stories:
- More Government help on the way to Northern Territory first home buyers
- Average first home buyer loan sizes around the country
- Sydney agent labels Gen Y lazy, FHBA co-founder Taj Singh responds
- FHBA New Homes of the Week – Edition 24 (special regional edition)
First Home Buyers Australia