Clearance rates have sat below 60% for weeks and a fifth of auctions are withdrawn. That sounds like bad news. For a prepared buyer, it is not.
The pace has clearly come off. Nationally, prices are still up around 9.4% over the year, but monthly growth has slowed to about 0.3%. Melbourne has flattened out, easing month to month while sitting roughly 2.8% above where it was a year ago.
Auctions tell the clearer story. Clearance rates have now sat below 60% for several weeks, withdrawals are up, and pass-ins are common enough that buyers should expect them rather than be surprised by them.
Rate rises, cost-of-living pressure and a fair amount of global uncertainty have taken the urgency out of the market. Buyers are still active, they are just far more selective. Vendors, meanwhile, are noticeably more nervous than they were.
That combination is uncomfortable if you are selling. If you are buying, it is the most useful set of conditions you have had in years.
The instinct is to sit out and wait for things to feel settled. I understand it, but the best opportunities rarely exist when everything feels certain. By the time the market reads as safe, the competition is back and the discount has gone.
Good buying conditions look exactly like this: fewer bidders, softer sentiment, and vendors who will genuinely negotiate.
Nobody times the market. What you can control is whether you know what you are looking at, and whether you are ready when the right home appears.
Note: this is general advice and does not take into account your objectives, situation or needs. Please consider whether it is suitable for you, and speak to a professional before making any financial decisions.
