Melbourne and Sydney auction clearance rates firming, but no sign of rising prices

Capital city auction clearance rates firmed, but agents suggest there’s no sign of rising prices.

Melbourne’s clearance rate was 61%, up from the previous 54% result, according to the Real Estate Institute of Victoria.

Sydney’s clearance rate was 58.9%, up from the previous 55.3% result, according to Australian Property Monitors.

There was a $770,000 median house price sale in Sydney and a $674,000 median in Melbourne.

For units it was a $610,000 median in Sydney and $494,000 in Melbourne.

The market could get a boost in May were the Reserve Bank of Australia to reduce the cash rate by a widely expected 50 basis points.

“The increase in the Melbourne clearance rate is a positive sign that confidence in the residential market may be starting to improve,” REIV Enzo Raimondo says.

“If the next interest rate movement is a reduction, as is speculated, and that is actually passed on by the retail banks to borrowers it may further increase activity over winter,” he anticipates.

Noel Jones agent Adrian Jones says his agency sold five out of its six auction listings in Melbourne’s eastern suburbs, but there was no sign of rising prices.

"It's not a market where prices are going up much," Jones told Fairfax Media.

Agents including buyers' agent Mal James have commented on the lack of new stock on the market, with more sales taking place off-market and out of the public eye.