Hammers fall as auction season springs into action

September 6, 2016

Melbourne-future-skyline

 

The spring auction season has started with a bang, with the capital cities recording the year’s highest national clearance rate at the weekend.

Despite a fall in the number of properties on offer — dropping from 2153 last week to 1858 — the national clearance rate hit 78.4 per cent, more than 5 per cent higher than the same period last year.

The preliminary results from CoreLogic RP Data reflect the annual bumper spring rush as the property industry begins one of its busiest times.

The results come a month after the Reserve Bank slashed the interest rate and days before its board meets tomorrow, when it is expected to keep the official cash rate steady at its record low level of 1.5 per cent.

CoreLogic director Kevin Brogan said the first weekend of spring traditionally was strong for property sales.

“Typically, there has been an increase in activity, and I think obviously there is strong demand. The auction numbers are a little bit lower than last week … but that clearance rate is pretty strong,” he said.

“The main thing now is to see if there is an increase in volume next week and the clearance rate keeps pace.”

While there were fewer auctions in Sydney and Melbourne than this time last year, the clearance rates of 83.9 per cent and 79.3 per cent were both significantly higher than the previous week. Brisbane, Canberra and Adelaide also recorded their highest clearance rates of the year.

“For the last few weeks we’ve seen lower auction rates, which speaks to lower confidence,” Mr Brogan said. “But a counter for that was the strength of clearance rates; anybody taking a property to auction next weekend would really be feeling quite confident.”

Sydney couple Warren Muir and Atsuko Furuya are selling their three-bedroom Balmain property next weekend as their two sons become more independent and they look to buy a second home in Tokyo.

“(The property market) is getting more lively,” Ms Furuya said.

“A year ago, it was booming but after that it started to cool down and we were concerned.”

“But it seems more and more people are coming back to the property market.”

“One of the reasons is the interest rate is lower. I’m not really sure of any other reasons, but it’s good for us.”

 

Source: The Australian