Sales strike an obstacle

Owners face slowing home market

THE weekend’s 36 per cent auction clearance rate in Geelong is an indication sellers will see agents working harder for their commissions in 2019.

Nine from 25 properties offered at auctions on Saturday had sold by the end of the weekend.

While it is early days for a market that does not usually hit full volume until autumn, it is an indication homes will take longer to sell after two years where some homes figuratively flew out the door.

Mark Harmon, the Geelong manager for national valuation firm Herron Todd White, said uncertainty surrounding the Federal Government’s response to the Hayne royal commission report was a big influence on the market.

Mr Harmon said while Geelong would continue to rise, opposite to the downward trend in Melbourne, it would take longer to find buyers.

“It’s still affordable by all means. But days on market will slowly start to come out,” he said.

“Where homes might have sold on the first or second open, or be under formal offer, now we’re starting to see that might be 20 to 30 days.”

Ray White, Highton, agent Adam Natonewski said it meant more work with buyers and stronger communication with vendors.

Mr Natonewski had two properties pass in at the weekend, including a three-bedroom brick veneer house at Kinther Court, Highton.

“We didn’t have any bidding but, post-auction, we had some negotiation. We expect it to be sold by the end of the week,” he said.

Mr Natonewski said his agents were seeing more conditional buyers, making it harder to clear auctions.

But he said auctions should deliver better results.

“I still think the process is important. It puts a deadline on a sale,” he said.

“If we didn’t do that for a couple of properties this year we wouldn’t even be getting close to a sale.

“It’s about managing the vendors’ expectations and, I guess, after a four-week period generally they are in a more realistic position.”

Properties also passed in at Belmont, Drumcondra, Newtown, Manifold Heights and Rippleside, though agents were in talks with buyers for several homes. No coastal auctions were successful at the weekend.

“Where homes might have sold on the first or second open or be under formal offer, now we’re starting to see that might be 20 to 30 days.” VALUER MARK HARMON