Australia’s property market is currently enjoying a surge in activity, evidenced by high auction clearance rates.
According to figures released yesterday by RP Data, Canberra recorded a 100 per cent auction clearance rate last weekend.
Melbourne also enjoyed a high level of activity, registering an auction clearance rate of 81.9 per cent.
Of the 645 properties that went under the hammer in Melbourne, more than 400 were sold while only eight were withdrawn.
Rismark International’s managing director Christopher Joye said the nation’s housing market should enjoy modest activity over the next 12 months provided the RBA does not make a quick decision to tighten its monetary policy
“Home values are now increasing steadily in all areas including Australia’s most expensive suburbs. This has eviscerated the popular myth that the recovery was being driven exclusively by first timers at the cheaper end of the market,” Mr Joye said.
“While first time buyers did initially furnish the early momentum, upgraders and investors have now taken over the baton as we anticipated.”
LJ Hooker’s national auction manager Graeme Hyde said he was beginning to see a lot more investors and upgraders turning up at auctions.
“Property owners are less anxious about losing money on their existing homes and losing their jobs, which makes them more confident about being active in the market,” Mr Hyde said.
According to Mr Hyde, offices have been anecdotally reporting an enquiry increase of up to 80 per cent in recent weeks.