-Nov 27, 2024 By City Sales Ltd

Auction Wrap-Up: The Market’s Reality Check

Today’s auction results might surprise some, but they reveal the core truth of what’s happening in the market right now. Out of 7 properties, only one found a new owner under the hammer. But here’s the interesting part: every property had multiple bidders, and the opening bids were reasonable, signaling that buyers are being fair, grounded, and realistic about today’s market conditions.

So, where did things fall short?

It wasn’t the buyers. It was the vendors.

With the positive sentiment in the economy, the Reserve Bank’s drop in the OCR, and the festive season approaching, it’s easy for vendors to get caught up in the sense that things are looking up. However, feelings are just that—feelings. And when you look at the broader reality, the picture isn’t as rosy.

We’re still facing ongoing challenges. Mass job losses continue, and there’s instability looming as people grow more cautious about taking on new debt. After all, who’s willing to commit to a big mortgage when job security is shaky?

The forecast for 2025 isn’t one of carefree growth. In fact, the trend of financial caution is growing stronger. We’ve shifted from the mindset of “survive to 25” to one that acknowledges the uncertainty in the global market. The American election is on the horizon, raising concerns about how things will play out there, and tensions worldwide are only escalating. Germany has even released an app to help its citizens identify safe places in case of war raids.

What’s clear is that the optimism we felt a few months ago is quickly being tempered by these global and local realities.

So, what does this mean for vendors?

While it's tempting to let the positive news from the economy and the festive season influence your pricing, it’s critical to stay grounded. Buyers are interested, but they won’t overpay, and they certainly won’t overcommit to a deal that doesn’t make sense in the long term. The key to success in this environment is pricing realistically and being prepared to negotiate.

That being said - we know these properties, now open to conditional interest - most will have offers by this evening. All are highly likely to be sold within 2 weeks with the City Sales auction clearance rates sitting at an industry leading 80%+

As we move into the holiday season and the year ahead, let’s not forget the bigger picture: the global landscape is shifting, and while there are bright spots, the risks remain. The market may have its ups and downs, but those who stay focused on the long-term realities and approach the market with caution will be the ones who thrive in 2025.

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