Auction clearance rates are often an indication of what’s on the horizon for the property market. Across Australia auction rates are rising and many feel this means that 2015 will have a strong property market.
Sydney’s clearance rate, when compared to the same time last year, is 5% higher, with less properties sold and the median property prices being higher. Melbourne, Adelaide and Brisbane recorded a similar trend.
Auction Rates are the highest in 5 Years
National clearance rates hit 80%, up from 76%. On a city-by-city basis, Sydney led the way with 88% of properties selling. Melbourne, Brisbane and Adelaide recorded lower rates, but were still strong. Melbourne recorded a 79% clearance rate, Brisbane 46%, up from 34%, and Adelaide a 63% rate, up from 52%.
With auction rates being the highest in 5-years, property experts suggest that now it the right time to sell if you’re considering it. Clearance rates that are in the 80s suggest that the market is favouring sellers. Strong demand for homes also suggests that many Australians are seeking to be more involved in the property market, and are looking to take advantage of lower interest rates.
Auction Clearances Rise After Rate Cuts
Sydney and Melbourne’s auction rates have increased since the Reserve Bank of Australia (RBA) cut interest rates. Real estate experts suggest that the latest cut has been welcomed by buyers, especially investors.
The RBA has stated that it is also concerned about rising home prices in Australia’s two largest capital cities and that this is why it has introduced measures by the Australian Prudential Authority so that investor activity could be tempered.
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