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 percent 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 percent, up from 76 percent. On a city-by-city basis, Sydney led the way with 88 percent of properties selling. Melbourne, Brisbane and Adelaide recorded lower rates, but were still strong. Melbourne recorded a 79 percent clearance rate, Brisbane 46 percent, up from 34 percent, and Adelaide a 63 percent rate, up from 52 percent.
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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Written by eChoice