Wednesday, February 27, 2013
Monday, February 25, 2013
SYDNEY'S BOOM-TIME AUCTION CLEARANCE
Both markets have recorded solid clearance rates this year, but the weekend loomed as the first real test of 2013.
Sydney's 513 listings for auction and Melbourne's 959 were double the numbers offered for sale the previous weekend and higher than the same weekend last year.
However, the two cities recorded strong clearance rates. Sydney's 76.3 per cent is the highest rate for years and reflects boom-time activity similar to the market in 2010. It follows a rate of 71.6 per cent the previous weekend and indicates growing market momentum.
For the same weekend last year the clearance rate in Sydney was 56.6 per cent, showing how far the market has come over the past year.
There are also signs of a more generalised upswing, with increased buying in the recently dormant prestige market. Eight properties were reported sold in Sydney with a value above $2 million, including one sale of $3 million and another of $5 million.
The inner west remains the auction hot spot, with the highest regional clearance rate of 83 per cent – and this from the highest number of listings.
The median price for houses reported sold in the inner west at the weekend was $983,750; for units it was $573,000.
The highest reported sale in Sydney was a six-bedroom house in Vaucluse that sold for $5.15 million. The lowest reported sale was a three-bedroom house in Carramar for $368,000.
Like Sydney, Melbourne recorded its strongest result since the house price boom of 2010 despite a high number of listings. And like Sydney the weekend's 71.6 per cent clearance rate was significantly higher than the rate recorded a year ago on the same weekend.
Signs are emerging in Melbourne that the buyer momentum in the prestige market through most of last year may be spreading to mid-range price sectors, particularly in the eastern suburbs.
It's no secret or surprise that the stronger housing markets in Sydney and Melbourne are being driven by historically low interest rates and rising confidence.
The heating up and the inevitable price rises that will follow will provide the Reserve Bank with a conundrum given signs of continued weakness in other sectors of the economy.
Dr Andrew Wilson is senior economist for Australian Property Monitors.
CLICK HERE TO DOWNLOAD SATURDAY'S AUCTION RESULTS
Tuesday, February 19, 2013
Tuesday, February 12, 2013
MY YOUTUBE CHANNEL FOR 2013
As well as the usual Market Update and Buyer and Seller Hints and Tips I will also be bringing you interviews with Industry Experts... Charles Tarbey and Tom Panos just to name a few!
Wednesday, February 6, 2013
RBA LEAVES CASH RATE ON HOLD AT 3% IN FEBRUARY
By
Larry Schlesinger
A poll of 28 economists carried out by Bloomberg last week found that 24 expected the RBA to leave the cash rate unchanged today.
Preliminary figures released by ABS today revealed that capital city house prices increased by 1.6% over the December quarter, following a revised 0.1% fall over the September quarter, indicating that previous rate cuts may be starting to have an impact on the housing market.
Commenting on the decision, RP Data national research director Tim Lawless said the RBA was likely to be "reasonably satisfied with how the housing market has played out since they embarked on the rate cutting cycle back in November 2011".
"Since that time dwelling values across the combined capital cities of Australia have increased by 0.8%, and values are up 3.1% since bottoming out at the end of May last year.
"Most other indicators are also showing some subtle improvements, albeit from a low base.
"Consumer confidence has shown some improvement, commodity prices are once again on the rise, and share markets have shown some consistent gains as well. The big wild card remains the labour market; how high will unemployment go and at what level will the RBA react with a further cut to the cash rate," he says.
Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au, said that while there was no cut from the Reserve Bank today, "it is possible that we’ll see lenders make an unprecedented move to cut their rates out-of-cycle this year".
"Lenders have kept 40 basis points on average from variable home loans since rates began to fall and with wholesale funding reportedly lower, they have room to move," she says.
"Borrowers need to keep a close eye on their lenders, find out what rates you’re paying and compare it to the rest of the home loan market using RateCity. The slow lending market is set to continue so borrowers are in a great position to haggle for an even better deal.”
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