Auction clearance inproves

Despite gloomy weather, the Sydney property market was going hot this weekend with clearance rates hitting figures not seen for over 10 months.

Property buyers ignored Saturday’s rain, spending $117.7 million on 148 properties across the city, pushing up the clearance rate to 63.5 per cent from 52.6 per cent the week before. This was the highest auction clearance rate since September 2010.

The Melbourne market also had strong buyer interest and better clearance than the city has seen for some time with agents clearing 61.7 per cent at auction on Saturday, generating $60.3m as 92 properties sold under the hammer.

A week earlier, 130 properties were sold, netting $73.3m, with a clearance rate of 55.1 per cent. Melbourne’s highest rate in the past 10 months was on October 30 last year when 72.7 per cent of properties were sold at auctions.

Real Estate Institute of Australia acting president Pamela Bennett believes the improvements seen this weekend can be largely attributed to vendors being more realistic about meeting buyers’ price expectations, as well as people’s desire to move on in life.

“It is always difficult to know all the indicators, but the market has been quiet and low for a while and it gets to a point where people want to move on with their life; they see what they like and they want to buy,” Ms Bennett said.