Buyer demand lifting home prices

Rising clearance rates did little to lift the number of homes going to auction at the weekend.

The preliminary national weighted average lifted 7 per cent on last week’s final figure to 77 per cent. Picture: Tim Hunter.

Spring energy and rising clearance rates did little to lift the number of homes going to auction this weekend, with volumes down from last week.

Buyers were out in force on Saturday, driving preliminary clearance rates of 83.1 per cent in Sydney from 522 auctions, while Melbourne auctioned cleared 76.6 per cent of 769 properties.

The preliminary national weighted average lifted 7 per cent on last week’s final figure to 77 per cent.

CoreLogic auction commentator Kevin Brogan said low volumes were unsurprising at the end of a downturn, likening the market to the slow 2013 auction season start. “We haven’t seen the spring listing surge hit the auction market yet and volumes look to be holding steady in the coming weeks,” Mr Brogan said.

Sydney clearance rates were up 32.5 per cent on the same time last year, with 120 more homes on the block. Melbourne achieved a 60 per cent clearance rate on 891 homes.

Lower volumes in Brisbane and Adelaide saw the capitals achieve higher week-on-week clearance rates of 60.3 per cent and 76.2 per cent. Perth was the only capital with a preliminary rate under 50 per cent.

Andrew Wilson, My Housing Market chief economist, said strong clearances lifted prices.

House prices rose 0.8 per cent nationally in August, driven by a 1.6 per cent rise in Sydney and 1.4 per cent lift in Melbourne.