Mortgage rate rise hits auction results

St George Bank’s decision to increase it standard variable mortgage rate by 0.2% has dragged down the weekend’s auction results.

St George Bank’s decision to increase it standard variable mortgage rate by 0.2% has dragged down the weekend’s auction results.

In Melbourne, there were 395 homes up for auction with a clearance rate of 66%. That is substantially down on the same weekend last year, when there were 458 homes up for auction and a clearance rate of 85%.

In Sydney, 172 properties were offered at auction with a clearance rate of 54%. Adelaide auctions were again subdued, with 13 of the 28 homes up for auction going under the hammer.

The Brisbane property market was also relatively slow, with 43 homes up for auction and just 15 sold. However, this market is expected to get a boost in the coming weeks from cuts to stamp duty which came into effect on 1 July.

Read more on housing affordability and auction clearance rates