Melbourne’s auction clearance rate burst through the 80 per cent mark last week as buyers rushed in amid low interest rates and a shortage of property supply.
It was one of the highest sales figures reached for this year, with CoreLogic recording a clearance rate of 80.5 per cent from 820 reported auctions, a strong rebound from the Melbourne Cup long weekend quiet period.
The shortage in supply of available property in desirable areas is driving the rush of activity, as is the impending Christmas and summer holiday period.
The lack of homes on the market has pushed up clearance rates this week to much higher levels than the same weekend last year, which recorded a clearance rate of 69 per cent.
That came from an auction pool of 1204 and significantly higher than this week in Melbourne, which was under 1000.
Gary Peer from Gary Peer & Associates told the Herald Sun his agents sold 19 of their 20 properties that went on auction this week and he was rapt with the clearance rate and the prices they were able to get for the properties.
“There’s no question there’s urgency in the market,” he said.
“Not everything is white hot, but there’s an unprecedented appetite for family homes.”
Mr Peer said the ongoing environment of record-low interest rates was giving buyers the confidence to take out long-term mortgages.