Latest NewsHousing Market Strong, but Urgency EasesTuesday, 24 January 2017

Strong yet cautious - this seems to be the general impression of the weekend property market after a third successive clearance rate below 80 per cent.

Of 756 auctions reported, the rate was 74 per cent, the lowest since the Easter weekend.

''Sanity is returning to the market,'' according to buyers advocate Michael Ramsay, who said the market was slowly returning to more sustainable levels.

''Where there are quality properties with realistic reserves being set, fair and reasonable prices are being achieved.''

''Obviously there will be a few runaway auctions but there's a general calm over the market - buyers are more cautious and bidders are less aggressive.''

Agent, Craig Stephens said compared to two months ago there had also been a 25 per cent decline in open-day numbers.

Buyers advocate David Morrell said he noticed less competitive bidding.

''The market's had a Panadol and it needed it,'' he said. ''The turnaround in the last few weeks has been dramatic.''

Though clearance rates were easing, Buxton director Craig Williamson said prices were still surging.

A three-bedroom which he estimated at $620,000, sold before auction for $801,000.

Other said the culmination of interest rate rises, uncertainty in the world economy and an increase in supply was ''softening the urgency of the marketplace'.

He said a property at 57 Wilson Road in Glen Waverley - ''where five years ago there were virtually no auctions'' - sold for $938,000, going on the market at $880,000.

With buyer uncertainty, more vendors are revisiting their reserves.

Due to stock levels, Buyer Advocate Catherine Cashmore expected the clearance rate to remain below 80 per cent in May.

''But if sales numbers continue at this rate, then the market is certainly not cooling off,'' she said.

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