Interest rate cut to 'encourage' auctions
Current flat auction activity in all major capital cities could pick up if the Reserve Bank of Australia decides to slash rates tomorrow, Real Estate Institute of Victoria (REIV) chief executive Enzo Raimondo said.
Research by Australian Property Monitors found that the auction activity in Sydney and Melbourne remained relatively flat with 54.3 per cent and 48.1 per cent of respective properties selling under the hammer this weekend.
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“It has been twelve months since the Reserve Bank last increased interest rates,” Mr Raimondo said.
“This Tuesday, buyers, sellers and mortgage holders will be hoping to see a cut to rates and if it occurs it will help encourage more buyers into the market, particularly in 2012.”
Auction activity in Adelaide took a hit over the weekend, with only 35 per cent of properties clearing – down 22.1 per cent when compared to the same period last year.
In Brisbane 31.6 per cent of properties listed for auction sold – an increase of 17.3 per cent when compared to the same weekend last year.
The most expansive property sold was a $3.5 million four bedroom house in Saratoga, NSW, while the most affordable property sold over the weekend was a two bedroom townhouse in Macquarie Fields NSW, which went under the hammer for $202,000.
