In the first Saturday since the federal election, auction clearance rates in Melbourne and Sydney bounced strongly back to levels that sustain a stable market.
Last weekend in Melbourne 62.9 per cent of auctions cleared and the figure was even higher in Sydney.
The CoreLogic figure might drop a touch after the final results are in but it’s the highest clearance rate since April last year.
Westpac’s Matthew Hassan spoke to the ABC about the strong result.
“Demand has clearly seen an initial boost from the clearer prospect of interest rate cuts and the removal of uncertainty around housing tax policy following the Coalition’s re-election,” he said.
“Prospective changes to loan serviceability assessments have likely given support as well.”
A clearance rate of around 50-55 per cent is associated with price stability in the Melbourne property market.
Mr Hassan said that while clearance rates last weekend were well above that figure of market stability, it might not necessarily mean a spike in house prices and it might not be sustained.
“The extent to which this generates a recovery in housing markets remains unclear,” he said.
“While the initial response is positive, it remains to be seen how much ‘follow through’ the move has.”
There has been renewed interest from both buyers and sellers in the market over the last two weeks, with Domain data recording an 11 per cent increase across the country of people attending home opens, and a 10 per cent increase in appraisals.
Domain’s Trent Wiltshire says those figures indicate there’s more confidence in the market.
“It’s a good indicator of buy interest,” he told Domaon.com
“People, even if they’re just thinking of buying, they’re starting to attend home inspections in greater numbers.”
“Sales volumes have been at two-decade lows. There’s obviously a lot of sellers sitting there and holding on who may be keen to sell once the market turns around.”