Auction clearance results in Sydney and Melbourne have showed no signs of slowing despite the looming threat of a December rate rise.
Melbourne hit an auction clearance rate of 74.2 per cent over the weekend.
The strong result reflects the booming Melbourne market. The Victorian capital city listed 1060 properties last week, the highest number offered all year.
Sydney mirrored Melbourne’s strong results, achieving a clearance rate of 66.9 per cent.
A four bedroom house in Haberfield was the most expensive property sold over the weekend for $ 3.52 million; a two bedroom townhouse in Minto was the cheapest at $190,000.
According to Australian Property Monitors, Adelaide achieved a clearance rate of 62.5 per cent, up from 51.6 per cent a week earlier, while Brisbane recorded a clearance rate of 54.8 per cent.
Economists expect the strong results to continue well into to 2010 when the effect of rising interest rates and a wind back in first home buyer stimulus will dampen demand in price sensitive segments of the market place.
“Home values were virtually flat over the month of September, increasing by just 0.1 per cent nationally,” RP Data’s head of Property Research Tim Lawless told Mortgage Business.
“The October figures to be released today will be the first to show what affect the reduction of boost to the First Home Buyers Grant has had on market conditions.
Additionally, it will be interesting to see if the first interest rate rise has dampened value growth during October.
“Investors and upgraders, who are much less price sensitive to rising interest rates and housing affordability, are likely to continue to gather pace in the market into 2010.”
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