The latest market forecasts from SQM Research are tipping growth of up to 3 per cent in 2018 for Brisbane, which is down from its previous forecast of 3 to 7 per cent, but still ahead of the southern capitals.
Sydney growth has been downgraded from a high of 12 per cent to 1 per cent and Melbourne from a high of 8 per cent to 0 per cent, and price drops are a possibility in these southern markets, reports news.com.au.
By comparison, Brissie is looking pretty good. But the reluctance for SQM to tip a higher growth rate in Brisbane is driven in part by auction clearance rates which are around 40 per cent.
The clearance rate is the percentage of homes that sell at auction compared to the total number that went to auction on a given weekend. But unlike the southern markets, Brisbane has never been too keen on auctions, with private treaty the preferred method of sale.
So how can you tell what’s happening in your local market and importantly, how your sale is going?
The number of people at open homes is a good indicator of whether you’ve priced your home in the ballpark.
“At the moment because there’s a lack of stock and there’s a heap of buyers, especially in housing…if you’re not getting anyone through and you’re getting very little enquiry, that’s a clear indication that you’ve overcooked the price,” said Watt Realty CEO Justin Watt in the above video.
“In two to four weeks you’re probably looking to get somewhere between 20 to 30 groups through if they’re priced within cooee and they’re reasonable homes in a decent suburb,” he said.