The property market has perked up since the Easter long weekend, with 1,568 auctions scheduled across the combined capital cities, compared to just 621 last week.
Capital city auction statistics (preliminary)
This week the preliminary clearance rate was 79.0%, on par with last week’s 78.9%. At the same time last year – when auction volumes were a lot higher – 67.2% of all auctions captured by Core Logic RP Data were cleared.
Weekly clearance rate, combined capital cities
Melbourne’s clearance rate was higher at 77.7% – over 10% higher than at the same time last year. However, there were only 674 auctions in Melbourne last week, compared to 1,530 in the same week last year. This week, Melbourne’s strongest performing suburbs included those in the Outer East region, followed by the Inner East.
Australia’s other top performing market, Sydney, also experienced a strong clearance rate of 84.8%, compared to 84.7% last week, and 74.8% last year.
This marks the ninth consecutive week in which auction clearance rates have been above 80%, highlighted in the chart below.
Weekly clearance rate, Sydney
Keep calm and buy a home
Chairman and owner of Century 21 Australasia, Charles Tarbey, says you shouldn’t be troubled by all the media hype relating to the housing market, because keeping a level head and considering all of your options first is imperative when purchasing a home.
While Tarbey is cautious on recent murmurings that would allow first home buyers to access their super for a property, he also refers to the highly reported topic of interest rates and reminds us that low rates can’t last forever, despite talk of them almost certainly going lower.
“I would therefore advocate that borrowers consider locking in a portion of their mortgage at the current rate. By doing this, borrowers can lock in at least a degree of certainty about future repayments, and reduce the risk of being fully affected by possible rate increases in the future.”
The question of affordability also has Tarbey recommending that first home buyers “think creatively” when purchasing a property, by looking further out into suburban areas while renting in the area you really want to live in.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
