House buyers hold all the cards Craig Binnie From: Herald Sun November 20, 2010 12:00AM
A RECORD 4385 auctions will be held over the next four weeks, giving buyers the best opportunity to snap up a bargain in two years.
The Real Estate Institute of Victoria said this was buyers' best opportunity since the global financial crisis to snap up property for less than it was worth.
For the first time, there will be four consecutive weekends with more than 1000 auctions scheduled, which could force sellers to accept less than they hoped for.
REIV spokesman Robert Larocca said the rise in the number of sellers without a corresponding increase in the number of buyers had set up sellers for disappointment.
"Buyers have a lot more opportunity and less competition than they have seen for a while," he said.
"There is little doubt the next four weeks will be the best conditions experienced by buyers for two years.
"Buyers often ask whether they are better off waiting. Looking at the past few weeks and expected volumes over the next few, you would have to say now is not the time to wait."
The auction clearance rate has been revised down to 59 per cent for the past two weekends after being artificially inflated by estate agents who are failing to report properties that are passed in.By hiding their failures, the agents have given buyers the impression that the market is stronger than it is.
This month's interest rate rise and the threat of further rises of up to 1 percentage point has forced many buyers to lower their budgets.
Buyers advocate Jason Wier, of Real Estate Angel, said the owners of the properties coming up for auction would have price expectations that were formed three months ago at the top of the market.
"Sellers are going to the market expecting prices that buyers now won't support," he said.
"Buyers should feel more relaxed about the buying process and expect less competition."
