NEW auction clearance data shows how much heat has come out of the Geelong property market since last year.
The clearance rate from the weekend was 50 per cent from 32 recorded results, compared to 93 per cent from 43 results at the same time in 2018, according to CoreLogic.
Data shows there are less properties going to auction now however the number of properties overall on the market has increased.
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There are 2128 properties for sale across the Geelong region, compared to 1787 at the same time last year.
CoreLogic Australian head of real estate Geoff White said last year clearance rates in Geelong were “extraordinary”.
“It is a normal market at the moment which is not a good or a bad thing,” Mr White said.
“Geelong for the most part of last year was considered to be a fantastic alternative to buying in Melbourne as there was value for money there.”
He said they regard Geelong as a regional area but it was more or less a subregion of Melbourne.
“There is still plenty of property, it will be a buyers’ market for most of this year.”
Mr White said the one thing affecting the market in general was finance.
He said banks were looking for three months-plus of expenditure and while you used to tighten your belt when you got the loan now you need to do it well before.
“We are hearing loan applications are taking many weeks to get approved and more than 50 per cent are refused,” he said.
Maxwell Collins, Geelong agent Nick Lord said finance was playing a big part as it was taking a bit longer.
“There are not as many properties going to auction, vendors are holding off a little bit and they are taking a bit longer to sell,” Mr Lord said.
“It is a changing market and we are getting back to normal sales, however we have seen the market holding quite well still.”
More properties might be passing in but Maverick Property Consultants buyer’s advocate Damian Fletcher said he was seeing a lot of buyers growing in confidence.
“They are willing to take it to negotiations post auction to ensure they have a better result,” Mr Fletcher said.
“It is an interesting landscape at the moment, buyers are more tentative to buy under the hammer, but they are happy to negotiate after.”