Raine & Horne

Brighter Day for Market As Auction Sales Rise

Written by Mary Anne Cronin

21 Jul 2010

A SUNNY winter's day brought out home buyers at the weekend, and auction-clearance rates were higher than the previous week. Although the clearance rates remain lower than at the same time last year, when the government economic stimulus packages were operating, agents say the trend is rising.

Australian Property Monitors said the clearance rate in Sydney was 61 per cent, compared with 49 per cent the previous weekend. A total of 205 homes were up for auction; 147 sold and 31 were withdrawn.

The highest price paid was $2.09 million, for a three-bedroom home in Bronte. A 10 bedroom home in Austral sold for $1.5 million.

The head of research at APM, Yvonne Chan, said the weekend's improved rate was a reflection that investors were feeling more comfortable.

A year ago the government stimulus packages and lower interest rates had increased clearance rates, Ms Chan said. But the weekend's rate of 61 per cent was encouraging and a big improvement on the previous week's 49 per cent, the lowest since December 2008, she said. While she did not expect figures similar to those a year ago, there were signs that auction rates were rising.

''People still need a place to live and are more confident that the economy is improving and their jobs are safe.''

 Source: domain.com.au