Strong auction results in Sydney and Melbourne despite school holidays and grand final weekends points to growing demand, analysts say.
Sydney’s preliminary auction clearance rate last weekend was 80% while Melbourne was 74%, according to Corelogic, despite the Sydney NRL grand final weekend when trading was expected to slow.
While a tad lower than preceding weeks, clearance rates in the 70s still indicate a strong market. At the same time last year, they were 46% in Sydney and 52% in Melbourne.
Overall, CoreLogic says weaker sales in other cities would see the final national clearance rate dip below 70%. Brisbane had a preliminary figure of only 37% while Perth improved at 63% and Canberra managed 74%.
There were concerns demand would not lift enough to absorb rising listings in Sydney and Melbourne but good auction performances and last month’s rise in house prices in both cities suggested those fears were overdone, says SQM’s Louis Christopher.
“I don’t think the market has cooled down at all,” he says.