Momentum remains in the property market heading into the New Year despite the Reserve Bank’s decision to increase the official cash rate last week.
Australian Property Monitors economist Matthew Bell said clearance rates remained relatively strong last weekend, suggesting there were still people looking to buy.
“Mortgage brokers had some of their highest levels of pre-approved buyers,” Mr Bell said.
“I think [interest rates] would need to rise another 100 basis points before they really start to have an effect on the industry.”
In Sydney, the clearance rate remained fairly strong at 65.1 per cent as $170.3 million of property sold.
A five bedroom house in Kirribilli was the most expensive property sold over the weekend for $4.7 million; a two bedroom unit in Bankstown was the cheapest property sold for $209,000.
Melbourne’s clearance rate again topped Sydney – as it has done for majority of the last six months.
The Victorian capita recorded a clearance rate of 72.6 per cent over the weekend.
Mr Bell said expectations of a cooling as government stimulus to the housing market was wound back had not come to pass.
“I think people overestimated the effect of the first home bonus slackening off and underestimated how many investors and up-graders were waiting in the wings,” Mr Bell said.
Adelaide and Brisbane were the only two capital cities to record less than average weekly clearance results.
Adelaide recorded a clearance rate of 41.7 per cent, while Brisbane sold just nine properties for a clearance rate of 30.0 per cent.