More home loans customers buying at auction

Wednesday 09 September 2009

Article by Mozo

There has been a surge in interest from buyers, including those using home loans, in purchasing properties at auction in recent months.

Most Australian capital cities have experienced a flourishing market at the beginning of the spring season, with clearance rates reaching 84 per cent at the weekend.

This represents a 20 per cent increase compared to the same period last year, news.com.au reported.

Meanwhile, in Sydney, 71 per cent of houses went under the hammer, with over $102 million being taken and Adelaide saw 74 per cent of homes sold in this way.

President of the Real Estate Institute of Australia David Airey said factors driving the improvement in the industry included boosted consumer confidence and realistic price expectations.

"The most important factor without doubt is the very low interest rates," he remarked.

"It has taken everyone by surprise, even in the industry," Mr Airey added.

The Reserve Bank of Australia decided to keep the country’s base rate at a 49-year low of three per cent this month, which may help those looking for low interest home loans.

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