Two events have combined to boost real estate clearance rates.
The recent interest rate cut delivered by the Reserve Bank coincided with the start of Melbourne's spring selling season, which traditionally kick starts market activity. The two factors produced a noticeable increase in Melbourne's auction clearance rate, providing excellent opportunities for buyers and sellers.
Three weeks ago, Melbourne's auction clearance rate fell to 59%, its lowest level since July 2006. In two weeks, however, it increased to 68%.
An increased demand for detached homes in the auction market has been most visible in Melbourne's inner south: the clearance rate in St Kilda, Brighton and Elwood jumped 17% in one week to 79%.
Not far behind were the western suburbs of Williamstown and Footscray, where the clearance rate increased from 50% to 66%.
Interestingly, results in the north-eastern suburbs of Ivanhoe and Heidleberg rivaled last years bumper clearance rates, recording 80% during the past two weeks.
Source: Enzo Raimondo, The Age, Sep 20 2008
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