This article was first published by TESSA AKERMAN on 26th Sept 2016 via theaustralian.com.au
Strong auction clearance rates in Sydney and Melbourne continued at the weekend as a result of high demand and relatively low numbers of properties on the market.
Nationally clearance rates remained above 70 per cent, with Melbourne recording a clearance rate of 79 per cent and Sydney 84 per cent, according to preliminary results from CoreLogic.
REA Group chief economist Nerida Conisbee said Melbourne had been experiencing elevated levels of demand since April, while Tasmania and Canberra were also strong.
She said Melbourne and Sydney had high levels of demand, but buyers in Melbourne were searching for more affordable properties, whereas in Sydney areas such as Rose Bay and Paddington were in strong demand.
She said the drive for premium suburbs showed a sense of confidence in employment.
“The big problem at the moment isn’t that people don’t want to buy, it’s that people don’t want to sell,” Ms Conisbee said.
Real Estate Institute Victoria spokesman Paul Bird said that next week there were only 60 auctions listed for Melbourne, due to the AFL grand final, with 40 or 50 of them before noon.
He said traditionally more properties were listed in October and November than September and that, by the Melbourne Cup, there should be about 1200 or 1300 auctions at weekends.
Mr Bird said the September quarterly results of Melbourne median house prices should show a 1-2 per cent rise from June’s $725,000.
Ray White Oakleigh sales agent Jonathan Eaves sold a property yesterday in Malvern East, in Melbourne’s eastern suburbs, for $1.5 million, $300,000 above expectations.
Mr Eaves agreed that the market in Melbourne was driven by supply at the moment, which kept prices high.
He said fellow agents were reporting that their listings were between 10 and 15 per cent down on this time last year.