Property auctions give mixed signals
9 February 09Sydney’s property clearance rate soared to a two-year high at the weekend, while savage weather and the bushfire crisis took a heavy toll on the Melbourne market, where sales crashed to record lows.
In Sydney, the clearance rate was 71 per cent, 15 percentage points higher than on the corresponding weekend last year and 21 points higher than the previous weekend, reports The Australian.
Analysts have suggested the first bounce in the stagnant property market will occur in Sydney, particularly in the western suburbs mortgage belt.
The spike in Sydney came after the Reserve Bank last week reduced official interest rates by one percentage point to 3.25 per cent, the lowest in 45 years, and the Government's boost to the first-home buyers' grant.
Australian Property Monitors senior economist Liam O'Hara said it was too early to predict a market revival.
"It is a huge lift, but it's a weekly result and we don't know whether this is a one-off, or if there is going to be a permanent level of confidence,'' he said.
The interest rate cut appeared to have no effect on the Melbourne market at the weekend, where only 79 properties were put on the market, compared with 327 for the corresponding weekend last year.
Mr O'Hara said the extreme weather would have hurt the market.
Auction volumes also fell significantly in Adelaide and Brisbane.
In Adelaide, which has also had extremely hot weather, only 19 properties went under the hammer, compared with 67 for the corresponding weekend last year.
In Brisbane, 31 properties were put on the market, compared with 50 last year.
The Brisbane clearance rate was 31 per cent, 12 points lower than the corresponding weekend last year.
The Adelaide clearance rate was down seven points from the previous weekend to 42 per cent, 19 points lower than a year earlier.