Auction clearances on the rise: what it means for Aussie home buyers
If you are a loyal Sydney-sider or Melbournite, or itching to become one, you may have heard that auctions clearances are creeping up and up, and this weekend was no exception.
More Aussies are flooding into two of the countries most popular cities, with property prices ‘bottomed out’ and home loan interest rates at an all time low, making it a prime time to buy.
According to Domain’s most recent figures, both Sydney and Melbourne have seen an increase in auction clearances in recent months with percentages proving to be significantly higher than they were this time last year.
Sydney’s preliminary clearance rate over the weekend was 78% after a total of 437 auctions and 207 confirmed results, a whopping 30% more than this time in 2018.
Similarly, Sydney’s neighbour to the south, Melbourne, also saw a huge 81% preliminary clearance rate after 596 auctions and 456 confirmed results, compared to 52% last year.
“The rising clearance rates in both Sydney and Melbourne and house prices creeping up again, shows that the property market is getting stronger,” Mozo’s Property Expert, Steve Jovcevski said.
“For home buyers, a stronger market means that they can buy a property knowing that it’s an appreciating asset meaning it will increase in value as time goes on. And with prices at the bottom of the market right now and lenders offering low home loan rates, they should avoid missing out on a great deal before prices rise further.”
Not only are the experts predicting positive things to come, Westpac’s recent Housing Sentiment Survey found that 51% of Aussies are feeling more confident about the property market than they did in 2018.
And we aren’t only talking about first home buyers either, the amount of Aussies wanting to upsize their home has jumped from 11% last year to 24%.
RELATED ARTICLE: Westpac says more Aussies are missing mortgage repayments: here’s how to avoid their mistakes.
With the spring property season around the corner, buyers are likely to have scheduled themselves in to an inspection or two, so here are 3 key tips to killing it in the housing market.
- Be picky: In spring there tend to be more listings, so use this opportunity to be picky about what you want. Don’t simply settle for something because you are afraid you’ll miss a good deal, take the time to review what is important to you in a home because you’re the one who has to live there!
- Don't get too attached to a particular property: With more listings comes more potential buyers and more competition for you. In the end you may not get your hands on a home that you fell in love with, so it’s important to keep an open mind, something will come up.
- Secure a competitive home loan: With the RBA cuts in June and July, lenders have been slashing home loan rates over the past few months, so if you shop around you are likely to find one that suits you (and has a low interest rate).
Looking to buy and need to find the right home loan for you? Head over to our home loan hub or keep up with the latest home loan news to stay in the know.
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