victorian real estate slumps to four year low

VICTORIA'S real estate market has slumped to its lowest point in more than four years.

At 807 auctions on Saturday, one in every two homes failed to sell under the hammer, Melbourne's Sunday Herald-Sun newspaper reported, with the clearance rate at 51 per cent.

The last time auction clearance rate was lower was in July 2004, with one weekend recording 47.6 per cent of successful sales.

In comparison, on December 1 last year, the clearance rate was 78 per cent, with 952 properties generating sales worth $502.18 million.

Patchy results in all price ranges have seen the rate "flatline'' at 54 per cent this month, following a week-long dip to 53 per cent on November 1.

Despite predictions that an expected further interest rate cut this week would boost sales, some real estate experts acknowledged would-be buyers were continuing to sit and wait because they believed they had the upper hand.

Tim Fletcher, whose real estate group posted a 50 per cent clearance rate on Saturday, stood by comments he made earlier this month, suggesting auctions were a "lazy option'' in today's sluggish market''.
Related Coverage

* Urban house prices fallNEWS.com.au, 26 Apr 2008
* Rents jump 20pc in inner suburbsNEWS.com.au, 8 May 2008
* AIG plans asset sales to repay US debtNEWS.com.au, 4 Oct 2008
* GPT drops to 24-year lowNEWS.com.au, 7 Jul 2008
* Home buyers hold fate of US economyNEWS.com.au, 25 Aug 2008

"I would think at least 300 of those 900-odd properties should not be at auction,'' he said on Saturday.

Hocking Stuart, which took 110 properties to auction on Saturday, sold 53 under the hammer, director Scott McElroy said.

"A lot has been said about auctions (in recent weeks), but we are confident many are going to sell next week,'' Mr McElroy said.