Auction clearance rates continued at their high levels last week, although slightly lower than the week before.
The high sales rates reflect the pick-up in real estate sentiment that has followed the Reserve Bank’s back-to-back rate cuts in June and July, the Federal Government’s tax deductions and changes to mortgage lending guidance.
Sydney and Melbourne both posted slightly lower preliminary clearance rates, bringing the national total to 75.7%, CoreLogic figures show.
That compares to the previous week’s preliminary rate of 77%, which was subsequently lowered to 72.3% (as usually happens after the results of more auctions are added in).
The past week has shown further improvements in housing markets. Official figures show mortgage lending commitments rose 5.1% in July – the biggest monthly gain in four years – and mortgage brokers and banks say demand for home loans has held strong over the past 6-7 weeks.