Election, rate cut constrain weekend auctions
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May 9, 2016
Election, rate cut constrain weekend auctions
Last week's rate cut and the looming federal election meant the weekend's auction results were solid, but still down significantly from last year.
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Image by Melbourne Deluxe Real Estate.This Camberwell property sold for $4.25 million last week, making it the week's most expensive Melbourne property.
Last week's surprise rate cut might have lowered mortgage rates, but it also sent a signal to property buyers that the Reserve Bank is nervous about the strength of the economy.
Weekend property buyers heeded the cautious signal from the nation's central bank, and the auction clearance rate was 74% according to CoreLogic, down slightly from the previous week, and down significantly from the same period last year.
A total of 2,182 properties went to auction, compared with 2,426 properties for the same week last year, and a clearance rate of 78%.
Melbourne and Sydney were the only cities to achieve clearance rates above 70%, and volumes were generally lower than last week.
Clearance rates in capital cities were:
- Sydney 73%
- Melbourne 71%
- Brisbane 44%
- Adelaide 60%
- Canberra 55%
Read more:
Auctions heading back to boom territory in Sydney, Melbourne
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