Auction clearance rates improve in Sydney and Melbourne

Spring is in the air, rates are on the way down and this weekend’s auction clearance rates indicate home buyers are getting more confident.

Spring is in the air, rates are on the way down and this weekend’s auction clearance rates indicate home buyers are getting more confident.

While Sydney’s rate dropped to 44.7% last week, it surged to 59%, just down from the 60% recorded this time last year.

Melbourne buyers were also out in force, helped by the first warm weather in months. The city’s clearance rate grew from the second week in a row, up from 64% to 68%.

But Adelaide and Brisbane haven’t seen the same turnout as the other capitals, experiencing a dramatic drop in buyer activity. Adelaide’s clearance rate fell from 64% last week to 38%, while Brisbane’s rate slumped from 37% to 19%

The results are as predicted by CommSec economist Craig James, who says that only one rate cut and the prospect of another would not be enough to spur ales.

“Two small rate cuts will probably only lead to a modest recovery in the housing market,” he told SmartCompany last week.

Related story:

• Rate fails to spur home buyers