Auction Clearance Rates Falling

Melbourne had a clearance rate of 63% yesterday, a new low. Gone are the days of 80%+ clearance rates in a frantic market. With interest rates at record lows, as they are being promoted, the property market has become a place of vendor over expectation. I could imagine what would happen once rates do go up.

One thing I am still struggling to come to terms with is the Liberal party and their proposed stamp duty concessions if they are elected. That's all we need, more fuel to the fire. The Liberals got it terribly wrong once with the FHOG but this time they are headed for disaster if they are elected. Fancy introducing such a concession at the top of the market. They are obviously out to get votes from the talk of the town at the moment......"property"...and there's plenty of people that are part of this talk.

Anyhow, just a few points to ponder on a lazy Sunday afternoon.

Comments welcome.

BBM