WBP Market Wrap: Clearance rates rise steadily in July. ---------------------------------------------------------------------- According to preliminary auction results, there were a reported 456 residential properties auctioned in Melbourne at the weekend, 74% or 337 of these selling. This result included 296 houses and 151 apartments, with clearance rates of 75% and 75% respectively. The balance of auctions consisted of vacant land sales. It’s important to note that the preliminary results may not accurately reflect the final outcome of the weekend’s activities, but rather are used as an early guide of market performance. As more sales are reported there is sometimes a drop in the clearance rate, typically between one and three percent. Clearance rate activity rose slightly in July, albeit only one to two percent, consistently achieving over 72% from week to week. This is reflective of the low number of properties compared with the high number of buyers currently active in the marketplace. Performance will remain buoyed by confidence, which is strongly underpinned by incredibly low lending affordability. In fact, recent five-year fixed-rate offerings from banks support the maintenance of current property market conditions. While spring isn’t expected to break any records in terms of listing volumes, the market will see a notable increase from current stock levels, which although not expected to entirely satisfy demand, will abate residual demand from the glut of unsuccessful buyers in the current market.
Posted on: Mon, 04 Aug 2014 03:15:30 +0000