Auction clearance rates top 60%

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Days after the Reserve Bank of Australia’s (RBA) rate-cut announcement, firmer clearance rates at auctions showed a renewed confidence in the housing market.

The average clearance rate was 68.92% for the 945 properties listed for auction across the country during the first week of July, according to CoreLogic. It was up from 66.5% for the previous week, with 1,292 properties listed for sale.

The firmer clearance rates followed the RBA’s move to slash another 0.25% to interest rates, resulting in a record low of 1%.

Sydney experienced a 78.24% initial clearance hit in the first week of July, while Melbourne saw a 70.31% clearance rate across 388 listings.

“We are already starting to see since the election the signs of a turnaround in the housing market. I there is a growing confidence in some of our housing sectors. We have seen (that in) some of our auction clearance rates just this weekend,” Assistant Finance Minister Zed Seselja told The Australian.

Data also suggested a 66.67% clearance rate in Adelaide, 40.63% in Brisbane, and 25% in Perth.

“I think there were a lot of people holding back with the fear of what could have come if the Labour Party had implemented their taxation policies. With the various settings, I think we would expect to see some housing growth in the coming years, absolutely,” said Seselja.

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