Rate reduction has encouraged buyers into the market: Robert Larocca

This week’s preliminary clearance rate for Melbourne was 73.6% compared to last week’s final of 74.7%. This result is based on 871 auctions of residential homes with 641 selling and 230 being passed in.

The spike in listings this week was a test for the auction market and it recorded a pass mark by continuing the trend of the last month and a half. The most recent interest rate reduction came at the start of August and has clearly encouraged a few more buyers into the market and helped keep the clearance rate above 70%.

Across both methods of sale listings are rising with a 6.5% increase over the last month in Victoria on seasonally adjusted terms. Buyers conservative position is however still evident with a 3.5% fall in local activity in the mortgage market.

Melbourne continues to track below the very strong Sydney auction market which recorded an 84.3% clearance rate this week.