The housing recovery is gaining momentum as buyers, buoyed by better borrowing conditions, stake their claim in the market. SQM Research’s Louis Christopher says the recovery is real, based on rising buyer demand in a low-volume market. The preliminary clearance rate for Sydney auctions last weekend was 78% from the 552 homes listed, according to CoreLogic figures. In Melbourne, the preliminary clearance rate hit 70% across 388 auctions. Nationally, there were fewer homes taken to auction because of school holidays in most states and mid-winter listings typically lower. The 945 auctions listed for capital city markets returned a preliminary clearance rate of 70%, the fourth week in a row that clearances exceeded 60%.
Christopher says most market recoveries he’d observed since 2001 had grown from a low volume market. “I’m not in the camp that thinks this a bogus recovery because it is based on low volumes so far,” he says. “It is a real recovery. There are more buyers out there due to cuts in interest rates, the Coalition win in the Federal Election and the loosening of credit restrictions by APRA.”