Sydney and Melbourne auction sales hit year highs

Sydney and Melbourne property markets had their strongest auction performance in more than a year, following a period of declining property prices and sluggish sales.

The return of confidence has been credited to multiple factors including cheaper borrowing due to an interest rate cut, and the preservation of negative gearing and capital gains concessions following the federal election.

Commentators say if strong auctions numbers continue, it may indicate that declines in Sydney and Melbourne markets have run their course.

After a prolonged period of decline in Sydney and Melbourne – which saw real prices fall 16.5% and 11.8% respectively from their recent peaks – both have enjoyed a boom in sales over the last week.

That flurry of buying helped lift the percentage of homes sold nationally to over 60% for the first time in over a year, according to data from property research firm, CoreLogic.

Preliminary figures show that 66.4% of properties sold at nearly 1500 auctions around the country.

That was boosted by a breakout week in the Sydney market where almost three out of four homes sold.

“The good news is that the 74.7 per cent clearance rate for Sydney is the strongest preliminary clearance rate since about July 2017,” CoreLogic commentator Kevin Brogan told Business Insider Australia.

Clearance rates are generally considered a key indicator of how markets are faring, but last week’s figures need to be taken with a grain of salt.

That’s because the number of houses on the market remains low. That’s as much a result of a subdued property market as it is to the typically slower winter period.

Compared to the same time last year, there were 267 fewer auctions in Melbourne and 186 less in Sydney this week.

*source Business Insider Australia 

Posted in Buy, Latest news, News, Sell on 18th June, 2019