About the author
Jane Slack-Smith has been named one of the Top 10 Property Experts in Australia by Money Magazine, one of the Top 4 Financial Influencers by Qantas and been awarded the Australia’s Mortgage Broker of the Year twice.

In a property auction, if no one bid on the property or if the bids didn’t meet the reserve, it gets passed in. These two words are unfriendly to any seller and can easily become a nightmare if it keeps happening. The seller would have to figure out what went wrong and try harder.

At 41%, the current auction clearance rates are abysmally low. What does this mean?

Demand does not meet supply.

According to clearance rates alone Sydney, Melbourne, and Canberra are the least attractive markets at the moment. The number of properties on the market in Sydney has risen to an all-time high and continues to climb.

As the options available to the buyers go up, more and more properties remain empty. Shaynna Blaze, one of The Block judges, has concerns on the unit market especially and says we’ll see even more of them in the near future.

She states that oversupply is the market’s most pressing issue as the number of empty high rise buildings continues to rise.

Another important factor to consider is the fall of interest-only loans. Many investors will have to switch to principal plus interest loans, which makes repayment tougher in the short term to the point of making an investment unviable. If they have to sell, they’re likely to try to sell their properties sooner, which can only add to the oversupply.

I look on the bright side. Even though two of the biggest markets are struggling, there are still many good opportunities for investors.

There are even markets in Sydney and Melbourne that are still seeing growth – so don’t think that there is one State or even City market – there are markets in markets.

And remember these times of stagnant and slow growth will come and go, it is how the property cycle works.

If you are investing for long-term these short-term corrections should not concern you.

Now is the time people are taking opportunity to buy under the market value and lock in value.

If you want to learn how to profit despite the difficult market, we encourage you to sign up for notifications on my FREE masterclass, details will be out next week.

https://www.theultimateguidetorenovation.com.au/