Property markets boosted by rate cut

by Rachel Seymour 10/02/2009

Sydney's property market received a welcome boost on the weekend, with property clearance rates climbing to 71 per cent, 21 percentage points higher than the previous weekend and 15 points higher than the same time last year.

But while Sydney was reveling in high numbers, the Melbourne market crashed, with clearance rates down to 43 per cent, down 20 points from the previous weekend and 28 points from the same time a year ago.  Extreme weather together with the bushfire crisis explain the Melbourne drop.

Sydney's impressive increase has been welcomed however, Australian Property Monitors senior economist Liam O'Hara is warning the worst may not be over just yet.

"It is a huge lift, but it's a weekly result and we don't know whether this is a one-off, or if there is going to be a permanent level of confidence," he said.

 Last week's interest rate cuts will have encouraged more buyers out into the market over the weekend, and the boost to the first homebuyer grant is also tempting many first homebuyers.

The Brisbane clearance rate was 31per cent, 12 points lower than the corresponding weekend last year. In Adelaide, where there was also hot weather over the weekend, the clearance rate fell by 19 points lower than the same time lastyear, down seven points from the previous weekend to 42 per cent.


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source: The Australian
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