Auctions paint mixed picture of home loan uptake
Despite a wave of new low-interest home loans coming on to the market, property auction figures across the country have painted a mixed picture of demand for bricks and mortar.
The Australian reports that in Sydney, the clearance rate hit 71 per cent over the weekend, a full 21 percentage points up from the weekend previous, indicating that first-home buyers and other investors have been flocking to the market since the new low-interest home loans have rolled out.
However, it was an altogether gloomier picture in Melbourne as the raging bushfires kept buyers away from auction houses.
Commenting on the spike in Sydney, Australian Property Monitors expert Liam O’Hara said that these figures may not be as strong as they appear.
“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 warned.
At its first meeting of 2009 last week, the Reserve Board started the year as they left off, voting for a full 100 basis point reduction in official interest rates, taking the base rate to 3.25 per cent.