Latest data from CoreLogic confirms the APM data we discussed on Saturday, that auction clearance rates hit a high note this past weekend. This should be no surprise given the ultra-low interest rates available, and the strong demand for property as articulated in our recent surveys. We think this confirms the regulators need further to act to curb property lending, or raise, not cut the cash rate. This despite their recent assurances all is well in the property sector.
This week, 1,747 capital city auctions were held and preliminary results show that 1,485 auctions have been reported so far, with a preliminary clearance rate of 76.6 per cent, rising from 75.0 per cent last week across 1,471 auctions. This week’s clearance rate is comparable to one year ago, when 72.9 per cent of capital city properties cleared, however auction volumes remain significantly lower, as one year ago when 2,248 homes were taken to auction across the combined capitals. Preliminary results this week show that while Melbourne and Sydney maintain their place as the strongest performing cities, Canberra and Brisbane have also shown strengthening clearance rate performance.
