Despite a flood of listings auction clearance rates in our two biggest cities have hit the roof, reflecting the rebounding housing market.
More than double the listings went to auction on the weekend but it wasn’t enough to stop Melbourne recording a clearance rate of 75 per cent, with Sydney even higher at 80 per cent.
Across the country the auction clearance rate recorded a figure of 69.4 per cent.
With upwards of 5700 first-home buyers taking up the federal government’s home loan deposit scheme, real estate agents say the number of them bidding for properties has risen sharply.
The increase in action has led to revised forecasts for house prices, now tipped to rise by around 8 per cent this year.
Ray White auctioneer Alex Pattaro spoke to Australian Financial Review.
“There’s still a shortage of stock and many first-home buyers believe now is the time to buy, believing prices are set to rise,” he said.
“There is a strong sense of competition in the market right now.”
Auction clearance rates in both cities are now around 20 per cent higher than at the same time last year.
Domain senior research analyst Nicola Powell told AFR the new wave of confidence will be driving good results for the next few months.
“The market is starting to kick back into gear and we’ll begin to see lots of new listings come on between now and Easter,” she said.
“This weekend’s clearance rates really illustrate the confidence that has come back into the market.”
“Last year, there were fewer buyers in the market, it was harder to get a loan and we were seeing an elevation of stock.”