Despite three interest rate hikes last year and the threat of more this year, the real estate market has remained relatively buoyant, recording positive auction clearance results in the first big auction weekend of the year.
According to data from Australian Property Monitors, Melbourne recorded a 66.2 per cent clearance rate over the weekend, up from the 49.2 per cent recorded this time last year.
In Sydney, buyers fought against the wild weather to clear more than 67 per cent of all properties listed.
Sydney also hosted Saturday’s dearest sale, when a five bedroom house in inner-western Strathfield sold for$1.8 million.
Sydney’s cheapest sale for the weekend was a parcel of land in Umina Beach that sold for $150,000.
Even the notoriously quieter auction markets of Brisbane and Adelaide managed to perform well.
Adelaide achieved a clearance rate of 54 per cent, while Brisbane managed to clear just over 40 per cent of all the properties listed for sale over the weekend.
APM economist Matthew Bell said the medium to long term outlook for property prices remained strong.
“As high population growth, rising incomes and a relative lack of new supply means there will be more demand for housing than supply,” Mr Bell said.
“In the major capitals, the median sale price of houses in the most expensive 50 per cent of suburbs rose by 17.1 per cent from its March quarter lows, compared with a rise of 9.6 per cent for the bottom half of the market.”