Positive auctions, housing finance data continue to spell good news for property market

The property industry has been given yet another double-boost in confidence this morning, after new finance data showing more people are buying homes accompanied another strong week in auction clearance rates.

The results are a continuation of the steady recovery in the property market, which is rebounding after a shocking few years.

According to the Real Estate Institute of Victoria, the market recorded a clearance rate of 60% compared to 59% last weekend and 51% for the same weekend last year.

Experts note the market has recorded results in several weeks now where clearance rates have been better than in corresponding weekends last year. Many commentators see this as an indication the market is improving.

There were 733 auctions, with 437 selling and 296 passed in.

“Buyers will welcome the increase in stock and the choice of homes over the next few weeks with the market entering the last weeks of the spring selling season,” chief executive Enzo Raimondo said in a statement.

Listings usually increase after Melbourne Cup day – next week Melbourne expects 980 weeks, and 1,000 the following weekend. The first weekend in December is scheduled to host 910 auctions.

The good results have continued across the country. Sydney had a clearance rate of 60.3% from 343 reported auctions.

Meanwhile, positive figures from the ABS suggest personal finance commitments are on the rise.

The new figures show in seasonally adjusted terms, the number of owner-occupied housing commitments rose by 0.9% – although construction commitments fell by 6.3%.

However, the purchase of new dwellings rose by 9% and the purchase of established dwellings also increased by 1.4%.

The good news accompanies positive forecasts from commentators. SQM Research managing director Louis Christopher recently forecast that values could rise as much as 7% in 2013.