The property market is starting to swing into gear as the January slow down officially comes to an end.
RP Data’s Market Activity Index showed the number of newly advertised properties for sale has increased by 17.6 per cent over the last week.
Auctions have also kicked off for the year, with RP Data’s index showing approximately 280 auctions were held throughout the capital cities last weekend.
Melbourne’s auction clearance rate was recorded at 54.8 per cent up while Sydney’s was 69 per cent.
The weighted average capital city auction clearance rate was just 43.3 per cent.
The RP Data-Rismark Home Value Index released earlier this week showed capital city home values rose just 4.7 per cent in 2010, with Tim Lawless, RP Data director of research conceding that 2011 could be a relatively flat year for residential property if further interest rate rises occur.
“A long term pause in interest rates would be welcomed by all segments of the housing market. If, however, the RBA raises rates several times in 2011, we think dwelling values will struggle to obtain much forward momentum over the year.”