Spring shone on the property market over the weekend, with auction clearance rates up in both Melbourne and Sydney.
Results from Australian Property Monitors (APM) showed Melbourne auction clearance rates at 80.1% (up from 72.6% last week) and for Sydney at 86.3% (up from 79.2% last week).
The results were up dramatically on the same weekend last year, which saw auction clearances at 62.6% for Sydney and 61.2% for Melbourne.
The Real Estate Institute of Victoria (REIV) recorded a clearance rate of 78% across the state, up from 74% last week and 59% compared to the same weekend last year.
Markets were still slower in Brisbane with clearance at 31.3%, down from 43.2% last week. The result for Adelaide was not yet recorded.
APM senior economist Andrew Wilson told SmartCompany this morning that the results for Sydney and Melbourne show the markets are on the rise, particularly Melbourne which he says has “shifted up two gears”.
The first rise was to clearance rates in the 70% range, now it is sitting in the 80% range.
“It is moving into strong territory,” Wilson says. “It shows the enthusiasm in the market, and the impact of the low interest rates.”
Wilson says there were higher property listings in Melbourne, which also demonstrates enthusiasm from sellers and more confidence. However, he says it is still not at the same level as peaks of 2009, 2007 and 2001.
The REIV reported that 837 houses were up for auction across the state on the weekend. Wilson says this is in high contrast to next Saturday, September 28, which will see the property market “pause and reflect” due to the Australian Football League grand final. There will only be around 50 to 60 auctions listed.
For Sydney, Wilson says the weekend results were “almost at record levels”.
“Sydney is on track for its strongest spring ever. It is averaging over the 85% clearance mark.”