Falling Australian home prices may see a reprieve with new data showing an increasing number of buyers at auctions, compared to the same time last year.
Data from CoreLogic shows there were 901 homes taken to auction across the combined capital cities this week, returning a preliminary clearance rate of 70.6%.
The property analytics firm estimates the final clearance results will be revised down to the mid-60s.
The same week last year saw higher auction activity with 1,257 homes taken to auction but a lower clearance rate of 57%.
Last week saw 847 homes taken to auction with the final clearance rate coming in at 65.4%, the first time there’s been a final clearance rate above 65% since March 2018.
Sydney recorded a preliminary clearance rate of 81.5% across 303 auctions, with an estimated final clearance rate of down to the mid-70s.
Adam Rigby, property expert and founder of ‘Upside’, Australia’s biggest fixed-fee agency, said the results are a sign the market is turning.
“Auctions are a great way to sell right now, buyers are back but supply is low so many properties are selling above reserve,” Mr Rigby said.
“The signs are there throughout the entire sales process with our average open home attendance in July sitting at more than double the yearly average.
“Buyer interest is back, and savvy homeowners are taking advantage.”
Kevin Brogan, Corelogic on clearance rates upward trend: We’re seeing that auctions are at a very low level but there’s still a fair bit of stock generally on the market in Sydney and Melbourne.— Sky News Australia (@SkyNewsAust) July 14, 2019
MORE: https://t.co/ouGE5i7MPt #BusinessWeekend is brought to you by @Westpac pic.twitter.com/fe39tk5YlC
Cheap ways to add value to your home
Mr Rigby said now is a good time to make small improvements to get top value if you’re considering selling.
“There’s a sliding scale of how much value you can create versus how much you spend,” Mr Rigby said.
“It’s no secret that styling your property pays off: our real estate agents estimate that it adds around 2.5% to the value of your home and it can also help your house sell faster.”
Here are Mr Rigby’s top tips to increase your home’s value and maximise the results of your sale without breaking the bank:
1.Choose your agent wisely and look at what they are charging in fees
When selling fixed-fee, you’re not only likely to pay less in sale costs, but you’ll know exactly what you’re paying for upfront. Upside, for example, charges a flat-fee of $8,900 for private treaty sales and $9,700 for auctions, compared to commission which are often in the 2-2.2% range but can climb higher than 3%.
2. Add a coat of paint
One of the fastest and most effective ways to revitalise your home, paint can instantly brighten up a room and cover up any wear and tear. Keep it neutral when choosing colours – stick to white, off white or cream.
3. Invest in some new plants
Plants can be used to offset harsher frontages and soften edges, indoor plants and flowers also make your home feel fresh and modern – literally breathing new life into even the tidiest rooms.
4. Up your curb appeal
Research shows 80% of Australians want a home with a yard for their family and pets, having a well-presented outdoor space can win over potential buyers. While landscaping can cost thousands, there are plenty of little touches you can add that will make your backyard shine. Start by trimming hedges and mowing the lawn.
5. Open up the space
Everyone wants a space that feels big and open – you might find that removing some items of furniture, or replacing them with smaller pieces creates an impression of space.
6. Hang up mirrors
Mirrors are an inexpensive way to instantly give a feeling of space to a room. Try placing a mirror behind the sofa, or shelf in the living room, or behind the headboard in a bedroom. In dark hallways, they are a great way to add space and open up the walkway.
7. Quick fixings
Kitchens can be expensive to renovate, but they’re also the room that sells a house. If your kitchen is looking tired, one great way to freshen the space up is by painting the cabinets. Finish the look with some new knobs or handles. Investing in new linens can also make a room feel inviting and cosy.
- How property investors can keep tenants onside during COVID-19
- Have a mortgage deferral? Here's how your lender is expected to help when it ends
- Unemployment marginally increases as job market recovers in July
- Australians flock to used cars as new car sales dwindle
- NAB cuts home loan interest rates for investors