With the property clearance rate holding steady, is it masking a bigger problem.

Over the weekend we saw another clearance rate at 76% but is it covering the problem of a lack of confidence, a lack of depth in buyers from uncertainty in the economy and also the State of Victoria but also a complete lack of investors due to the out of control taxing regime of the State Labor Government.

Over the past 2 months I have seen what can only be described as a multi speed property market.

What does this mean?

Well not all property is selling with competition, some is passing in, some is selling to one buyer, and some is selling for well above reserve.

Investment grade properties that used to sell strongly are now starting to struggle to sell due to the tax grab from the State Government.

What does appear to still be the standout sector of the market is the fully renovated family home or downsizer property.

Inherently these are two markets where you are at the most stable part of your life thus willing to take on debt, or alternatively the downsizer market is being supported by people who are selling the larger family homes to buy a smaller unit or townhouse and in a lot of cases are cash buyers.

This shows the broader issue of the economy in a snap shot, some people are cashed up and willing to spend it whilst others are living week to week.

The Property Market whilst stable isn’t perfect.

Vendors need to meet the market if they want to sell and not just listen to the agents who tell them what they want to hear.