Auction turnover rates pleasing

by Fred Wilson 13/07/2009

 Auction clearance rates good

 Auction clearance rates are strong in many areas and turnover is good, according to figures from Australian Property Monitors.

The clearance rate in Sydney was 69 per cent, which is up on the 48 per cent for the same time last year. 

Australian Property Monitors head of research Yvonne Chan says the research showed that auction clearance rates in capital cities was staying strong.

"Although medium prices have shown a small growth month on month since the beginning of this year, the activity level is fairly high, mainly due to the record low interest rates and an extension of the first-home buyers grant," she said.

"From other indicators, such as average days on market, units seem to be performing better than houses. This is the more affordable property type."

The clearance rate in Melbourne was 72 per cent, 20 percentage points better than last year's result. Brisbane's clearance rate of 45per cent also represented a significant improvement on last year's 23 per cent, while Adelaide's clearance rate was 66 per cent, up from 39 per cent on the corresponding weekend in 2008.

Kevin Lee, of Smartline mortgages, can see the increase in first home buyers in the market, saying the boost to the First Home Buyer Grant has pushed many buyer out into the market and are now on their way to owning their first home.



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source: The Australian
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