Auction Clearance Rates Climbing!

Property Club Property Market Insights

Greetings – hope you’ve had a great week!

One of the questions we get often these days is “How long is this property ‘downturn’ going to last?”

Looking at the chart below, would you think there is going to be a prolonged downturn in property?

The ABC reports that for the third successive week, home buyers have not only been out and about, they’ve splashed out. Auction clearance rates in Sydney hit 80 per cent, making it three successive weeks where better than three-quarters of properties on the block sold.

In Melbourne, it was a similar story, the strongest result since the market hit the skids two years ago. ANZ bank recent projection for dwelling growth is for house prices to edge up between 3 and 5 per cent next year (2020). With signs that house prices in the key Sydney and Melbourne markets appear to have stopped falling there are further signs, Australia’s worst housing downturn in modern history may be drawing to an end, with CoreLogic’s monthly index showing further modest price rises in July.

The company’s hedonic home value index showed a 0.1 per cent rise across the combined capital cities last month. Interest rate cuts over the past few months, along with APRA releasing some of their restrictions are providing some good stimulus for our property markets.

Property Club has great options in these fast-growing areas with properties best picked to take advantage of the upcoming upturn 

Contact your property mentor or for further information!

Troy Gunasekera | National Manager