Lowest rate on record spikes auctions clearance

Lowest rate on record spikes auctions clearance

11 Aug 2016 By: Greg Hocking 0 Comment

The stage is set for an action-packed spring selling season in Melbourne.

This week’s blistering scheduled auction sale results – 78% of 473 reported auctions sold under the hammer, according to Domain Group – is further proof our market has fundamentally less stock for sale than ready buyers, particularly good quality family-size houses in the inner and middle ring suburbs.

CoreLogic has posted 76.1% clearance of 639 reported results from the week ending August 7. Both national data providers’ results are upward movements on the previous week.

Last week the Reserve Bank decided to cut the official cash rate to 1.5%.

We are yet to see how much of this 0.25% lenders will pass on in their home loan interest rates to borrowers.

Nevertheless, the rate is the lowest Australia has ever seen. It is highly unlikely buyers needing to borrow will see the full cut in their banner interest rates, any reductions will certainly stimulate even more owner occupants and investors to buy this year.

The way things are going it is entirely possible we may reach the “red hot” auction clearance rate of 80% before Christmas.

And if I was a vendor or prospective vendor right now, I’d be feeling very optimistic of seeing a strong sale price in such robust conditions.

Call our team today if you’d like an obligation-free appraisal of your property.

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Greg Hocking

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