Record auction results in July have carried over to the first weekend of August and are likely to continue, according to Australian Property Monitors (APM).
Once again, Sydney led the pack with a residential auction clearance rate of 81.3 per cent, up from 80.3 per cent the week before.
According to senior economist at APM Dr Andrew Wilson, the results were unsurprising.
“The weekend auction clearance rate of 81.3 per cent was remarkably the fourth consecutive weekend result above 80 per cent,” he told Smart Property Investment.
“Sydney’s weekend auction market reached record highs over July, with the clearance rate of 75.9 per cent the highest ever recorded for that month and the second highest ever recorded – just behind the 78.3 per cent recorded over April 2002.”
Melbourne also produced a healthy result, with the residential clearance rate up 0.4 per cent to 69 per cent.
“Consistently solid to strong auction clearance rates in Melbourne’s regions this year have unsurprisingly translated into healthy price growth,” Dr Wilson said. “The outer east was the best performer over the first half of 2013, with median house prices rising by nine per cent.”
Dr Wilson believes the trend of impressive auction results will continue for Sydney and Melbourne, as the Reserve Bank comes to a decision at its board meeting tomorrow.
“[The] auction market can be expected to continue its record level mid-winter surge through August as indicated by the strong start to the month at the weekend,” he said.
“The real prospect of a cut in interest rates by the Reserve Bank this week will only add fuel to rising buyer activity and confidence, despite sobering economic forecasts.”