A passable clearance rate and substandard average selling price result in a minor slump in the South Australian real estate market. The volume of houses on the market and consistency of recent weeks suggesting this is a minor blip on the real estate radar.
This week, 113 auctions were scheduled, 77 of these recorded. 48 of these recorded auctions resulted in sales, yielding a disappointing clearance rate of 62%. However, this is dragged down by the withdrawal of half a dozen units, 1/3 to 6/3 Young Street in Kapunda.
Treating these as one withdrawal brings the fraction to 48 out of 72 sold, yielding a clearance rate of 67%, much more favourable and in keeping with different figures. It is an identical clearance rate to that of two weeks ago, but falls short of the weeks before and after, which had clearance rates of 75% and 77% respectively.
Interestingly, the previous 4 weeks have cycled between high 60% and mid-to-high 70% clearance rates like clockwork, suggesting a consistent cyclical pattern is taking hold in South Australia’s real estate market. Should this pattern hold, next week will see a return to the 70s.
The average selling price for this week was $646,747, lower than last week’s $656,355, which in turn fell short of the two weeks prior, which were above $680,000.
Unlike last week, this week does not have the excuse of a shortage of million-dollar properties, in conjunction with this drop in clearance rates must instead be construed as a symptom of a hopefully brief slump in South Australia’s real estate market.
Of these million-dollar sales, there are five. The second-most lucrative of these is 3 Albany Street, Grange. The $1,425,000 price-tag achieved by Laz Ouslinis and Brad Henderson of Ous Real Estate.
Commanding attention from the street, the multiple stories of this grand beach-side property are adorned with timber salvaged from local jetties, ultra-modern concrete floors and exposed structural beams, the style, spectacle and location of this property earning its immense worth.
The greatest sale of the week is the $1,565,000 sale of 50 Craighill Road, in Saint Georges, attained by Nick Baranikow of Harris Real Estate. This traditional Georgian home has undergone a full contemporary remodel, the towering ceilings, relics of classical homes, combine with floor-to-ceiling glass, state-of-the-art appliances and heated pool and spa.
This spectacular sale closes a week with a downturn that is more disappointing than alarming. Should next week see a further slump, the possibility of a less consistent 2018 becomes more distinct.