Despite a surge in first-home buyers capitalizing on low interest rates and grants the property market has slowed down dramatically with sales crashing to less than a third of last year's levels.
In the major markets of Sydney, Melbourne, Adelaide, and Brisbane just over 500 properties have sold at auction this year compared with more than 1800 at the same time last year.
Since January the 1st only 1775 properties have been placed on the market compared with more than 3700 last year.
Clearance rates continue to improve, thanks to strong first home buyer demand for cheap housing, however there has been a decrease in the middle and upper market sales.
Sam White deputy chairman of Ray White said that a shortage of cheaper properties was the key factor in driving up the clearance rates. Mr. White further commented that there were not enough properties on the market at the moment, but whatever was on the market at the correct price was selling.
There is a large demand for properties under $4000,000 at the moment.